# BRC-20

> BRC-20 is a Bitcoin-based token standard for Ordinals, enabling the creation, minting, and transfer of fungible tokens similar to Ethereum's ERC-20.

- Canonical URL: https://iq.wiki/wiki/brc-20
- Categories: Glossary
- Created: 2023-05-12T19:59:40.322Z
- Last updated: 2026-06-02T03:30:08.742Z
- Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki)

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**BRC-20**, or “Bitcoin Request for Comment,” is a token standard for [Ordinals](https://iq.wiki/wiki/bitcoin-ordinal). The standard allows for the issuance and transfer of fungible tokens on [Bitcoin](https://iq.wiki/wiki/bitcoin) similar to the [ERC-20](https://iq.wiki/wiki/erc-20) standard on [Ethereum](https://iq.wiki/wiki/ethereum) however BRC-20 tokens are not compatible with [smart contracts](https://iq.wiki/wiki/smart-contract). [\[7\]](#cite-id-3gsfpmr9wi5) [\[6\]](#cite-id-wj2yqmqwcyj) [\[1\]](#cite-id-g1bmbn7hnk)

# History

On January 21, 2023, the Bitcoin Ordinals protocol was launched on the [Bitcoin](https://iq.wiki/wiki/bitcoin) [mainnet](https://iq.wiki/wiki/mainnet) by software engineer and bitcoiner, [Casey Rodarmor](https://iq.wiki/wiki/casey-rodarmor). He began working on the project in 2022, after the Bitcoin Taproot upgrade in November 2021 which made it possible to create programmable [smart contracts](https://iq.wiki/wiki/smart-contract) on the [blockchain](https://iq.wiki/wiki/blockchain), called inscriptions. This concept led to the creation of [Bitcoin-based NFTs](https://iq.wiki/wiki/bitcoin-ordinal) and BRC-20 tokens, thus enabling the concept of Ordinals. [\[8\]](#cite-id-jk7avo7tutp)

## Creation

BRC-20 token standards were created and deployed on March 8, 2023 by a pseudonymous programmer named Domo as an experiment to make minting fungible tokens on Bitcoin possible. The first BRC-20 token deployed was called [Ordi](https://iq.wiki/wiki/ordi-token). [\[2\]](#cite-id-8z0mm8celv2)[\[6\]](#cite-id-wj2yqmqwcyj)

# Overview

BRC-20 tokens utilize Ordinals inscriptions of JSON (JavaScript Object Notation) data to deploy token contracts, mint, and transfer tokens. [\[2\]](#cite-id-8z0mm8celv2) The BRC-20 token standard allows creating a BRC-20 token with the deploy function, minting an amount of BRC-20 tokens with the [mint](https://iq.wiki/wiki/minting) function, and transferring an amount of BRC-20 tokens via the transfer function. [\[2\]](#cite-id-8z0mm8celv2)

The BRC-20 token standard has gained some adoption as people experiment with its capabilities. BRC-20 tokens are fungible, meaning they are interchangeable and easily traded on exchanges. BRC-20 tokens are built on the [Bitcoin protocol](https://iq.wiki/wiki/bitcoin), which secures [Bitcoin](https://iq.wiki/wiki/bitcoin-btc), the world's largest and most valuable [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency).\


## Differences from ERC-20

Despite the similarity in their names, there are significant differences between the two tokens. BRC-20 tokens exist on the Bitcoin network, while ERC-20 is a standard on the [Ethereum](https://iq.wiki/wiki/ethereum) network. BRC-20 tokens don’t use [smart contracts](https://iq.wiki/wiki/smart-contract) and, therefore, have much less functionality. On the contrary, ERC-20 tokens can interact with other protocols and applications to enable a wide range of services, including borrowing and lending. The BRC-20 token standard is an experiment by programmers to facilitate fungibility on the Bitcoin blockchain and was only created in March 2023. Therefore it has had less testing than the ERC-20 standard which was created in 2015. [\[2\]](#cite-id-8z0mm8celv2)

## Growth

In May of 2023, less than a month after the token standard was created, BRC-20 passed a market cap of $100 million reaching a high of $137 million on May 2, 2023. In April and May the standard continued to grow and on May 9, the total market capitalization of BRC-20 Bitcoin tokens briefly reached a high of over $1 billion, with a total trading volume of $207.7 million that day. Some of the most notable tokens making up that market cap included [ORDI](https://iq.wiki/wiki/ordi-token), NALS, VMPX, PEPE and [MEME](https://iq.wiki/wiki/meme-dollarmeme). [\[4\]](#cite-id-5js1k7wrm07)[\[5\]](#cite-id-doi0mczbhx5)

On December 6, 2023, ORDI, one of the leading BRC-20 tokens within the Ordinals ecosystem, achieved a significant milestone by becoming the first BRC-20 token to surpass a market capitalization of $1 billion. This surge represented a nearly 1,000% increase in market cap since November 5, reaching $1.1 billion. [\[9\]](#cite-id-82xzsombamv)

## Criticism

The Bitcoin community’s opinion is divided on ordinals and BRC-20. Some have embraced this new experiment, while others believe they go against [Satoshi Nakamoto](https://iq.wiki/wiki/satoshi-nakamoto)’s original vision of Bitcoin. While BRC-20 usage has grown the token standard is much newer and less tested than token standards like [ERC-20](https://iq.wiki/wiki/erc-20). Fewer developers, tools, and resources are available to build and manage BRC-20 tokens since Bitcoin is primarily known as a store of value rather than a platform for creating and managing tokens. [\[3](#cite-id-kaesfp43iih)