Everything You Need to Know about Bitcoin Ordinals and?BRC-20
Vaibhav Singh?
Web3 Marketer | Founder of TagWag | Growth Hacker | Influencer Marketing
Bitcoin has revolutionized the financial landscape with its decentralized nature and potential for innovation. One such innovation that has gained traction in recent times is the concept of ordinals and BRC-20 tokens. In this article, we will delve into the world of ordinals, their significance, and the emergence of BRC-20 tokens as a major player in this space.
1?? What is Bitcoin Ordinals?
Ordinals are digital assets, including images, videos, text, and code, that are directly inscribed on satoshis, which are the smallest units of Bitcoin. These unique digital assets hold value and can be bought, sold, and traded within the Bitcoin ecosystem. Ordinals provide a way to represent ownership of digital content in a decentralized and secure manner.
Bitcoin Ordinals (basically NFTs but on BTC instead of ETH) are
experiencing a real boom in recent weeks.
How Can We Buy Ordinals?
To buy ordinals, you need to follow a few simple steps:
1?? Create a wallet: Start by setting up a wallet, such as the xverseApp extension for Chrome, which is user-friendly and similar to MetaMask.
2?? Explore marketplaces: Once you have a wallet and some Bitcoin, you can browse different ordinal marketplaces. While many marketplaces have poor user interfaces, Magic Eden stands out as a user-friendly platform.
3?? Choose a project: Consider factors like floor prices and trading volume to identify popular and in-demand ordinal collections. Magic Eden provides a ranking of top projects to guide your selection.
4?? Buy an ordinal: The purchasing process for ordinals is similar to that of Ethereum NFTs. Select a collection and choose an ordinal within that collection. Click on “buy now” and confirm the transaction in your #xverseApp wallet.
5?? Additional considerations: Keep in mind that Bitcoin transactions for ordinals may take longer than #Ethereum NFT transactions. Be patient if your ordinal doesn’t appear immediately in your wallet. With Magic Eden , ordinals often remain in pending status due to longer transaction times.
2?? What is BRC-20?
BRC-20 is a standard for creating and minting tokens as ordinals on the Bitcoin network. It utilizes simple JSON code as the inscription for these tokens, defining their ticker and quantity. BRC-20 tokens have gained significant attention due to the rise of memecoins like #pepe, #ordi, and #meme and their increasing prevalence in the ordinal ecosystem. The collective market capitalization of BRC-20 tokens currently sits at around $500 million.
BRC-20 token is an experimental fungible token standard for Bitcoin
created by domodata on March 8th, 2023
BRC-20 standard allows the deployment of exchangeable tokens,
on #bitcoin Blockchain
Why is everyone talking about BRC-20?
BRC-20 tokens have garnered attention for their potential and market activity. The first BRC-20 token, $ORDI, experienced explosive growth in price since its creation. It currently holds a market cap of around $121 million, representing a significant portion of the total market cap of all BRC-20 tokens.
The increasing popularity of BRC-20 tokens has even led centralized exchanges (CEXs) to explore listing them.
How to Interact with BRC-20 Tokens
To interact with BRC-20 tokens, follow these steps:
1?? Set up a non-custodial Bitcoin wallet: Visit https://unisat.io and download the wallet. Create your wallet and securely save the seed phrase. Select ‘Taproot’ as the address type.
2?? Fund your wallet: Transfer BTC from a centralized exchange like #Binance or Bybit to your non-custodial wallet. Ensure you have sufficient funds to cover gas fees and the purchases you intend to make.
3?? Mint BRC-20 tokens: Visit the ‘BRC-20’ section in the wallet. Choose a token, such as $Bank, and click on the “Mint Directly” button. Set the number of repeat mints to 20 and submit the transaction with custom gas settings.
4?? Buy BRC-20 tokens: Return to the marketplace and unlock it. Select a token pack, such as 100 $Ordi, and proceed with the purchase. Confirm the transaction using your wallet.
Exploring the BRC-20 Universe
It’s important to note that BRC-20 tokens are not fragmentable and are exchanged between individuals through the marketplace. To acquire BRC-20 tokens, you must accept the offers made by sellers, which are typically round numbers (e.g., 50, 100, 200 tokens). As the popularity of BRC-20 tokens increases, it becomes crucial to exercise caution and perform due diligence, as many tokens may not hold long-term value.
Unfortunately, if you want to BUY, you will have to obtain access to the market place. To access, you need to collect 20 UniSat points, and to get them, you have to perform 20 transactions
So to get our UniSat points, we will start by minting some tokens:
Minting BRC-20 Tokens:
To mint BRC-20 tokens, follow these steps:
1?? Go to the ‘brc-20’ section of your wallet.
2?? Select a token, such as $Bank.
3?? Click the “Mint Directly” button.
4?? Set the repeat mint value to 20 to perform 20 transactions at once.
5?? Submit the transaction with custom gas settings.
领英推荐
The minting process will unlock the necessary UniSat points (20 points) required to access the marketplace.
Buying BRC-20 Tokens
To buy BRC-20 tokens, do the following:
1?? Return to the marketplace and click on the “Unlock” button.
2?? Select a token pack, such as 200 $Ordi.
3?? Proceed with the purchase by confirming the transaction with your wallet.
Remember to consider the platform fees (typically 1.6% of the purchase amount) and gas fees (around $10 to $20) when planning your purchases.
Important Considerations
When engaging with ordinals and BRC-20 tokens, keep the following in mind:
- The BRC-20 token space is still evolving, and caution is advised when exploring new projects.
- Ensure you thoroughly research tokens before minting or buying, as the market includes many low-value and potentially worthless tokens.
- Transactions on the Bitcoin network may take longer to process compared to Ethereum, so exercise patience.
- Stay informed about the latest developments in the ordinal ecosystem to identify emerging opportunities.
The Future of Ordinals and BRC-20 Tokens
Ordinals and BRC-20 tokens hold immense potential within the Bitcoin ecosystem. As the market continues to mature, we can expect more innovative use cases and increased adoption. The future looks promising for ordinals, and gaining expertise in navigating this space early on can provide significant advantages.
Conclusion
Ordinals and BRC-20 tokens have opened up new possibilities within the Bitcoin ecosystem. While ordinals represent digital assets directly inscribed on satoshis, BRC-20 tokens utilize simple JSON code for token creation and minting. The growing interest in ordinals and BRC-20 tokens has created a vibrant marketplace with opportunities for collectors and investors. By following the outlined steps, users can explore, mint, and buy BRC-20 tokens. However, caution is advised to avoid potential risks associated with low-value tokens. Stay informed, conduct thorough research, and keep an eye on this evolving space to make the most of the exciting world of ordinals and BRC-20 tokens.
Glossary:
?? Additional resources:?
https://www.brc-20.io/
https://unisat.io/
https://blockchair.com/
https://ordinals.com/
FAQs
1. Q: What are ordinals?
A: Ordinals are digital assets (such as images, videos, text, or code) directly inscribed on satoshis, which are the smallest units of Bitcoin.
2. Q: How can I buy ordinals?
A: To buy ordinals, you need a Bitcoin wallet and access to ordinals marketplaces. Follow the provided 5-step guide to purchase ordinals.
3. Q: What is BRC-20?
A: BRC-20 is a standard for creating and minting tokens as ordinals using simple JSON code for the inscription. It has gained popularity within the ordinal ecosystem.
4. Q: Why is BRC-20 significant?
A: BRC-20 tokens have gained attention due to the memecoin season and their increasing presence as ordinals. The total market cap for BRC-20 tokens is currently around $450 million.
5. Q: How do I mint BRC-20 tokens?
A: Minting BRC-20 tokens requires a non-custodial Bitcoin wallet. Follow the outlined steps to mint tokens and acquire UniSat points for accessing the marketplace.
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