The Bitcoin blockchain, long celebrated for its security and decentralization, is undergoing a quiet revolution. With the introduction of Bitcoin Ordinals and the BRC-20 token standard, the network has expanded beyond simple value transfers to support digital collectibles and fungible tokens—ushering in a new era of on-chain creativity and experimentation.
This guide explores how Ordinal Inscriptions enable NFT-like assets on Bitcoin, how BRC-20 tokens bring meme coins and fungible assets to the world’s most secure blockchain, and how these innovations compare to Ethereum’s well-established ERC-20 and NFT standards.
Understanding Bitcoin Ordinals and BRC-20 Tokens
Bitcoin has traditionally been viewed as a store of value or digital gold. However, in early 2023, the launch of the Ordinals protocol changed that perception by allowing users to inscribe data—like images, text, or audio—onto individual satoshis (the smallest unit of Bitcoin). This breakthrough laid the foundation for Bitcoin NFTs, commonly known as Ordinal Inscriptions.
Shortly after, the BRC-20 token standard emerged—an experimental method for creating fungible tokens on Bitcoin using the same inscription mechanism. Unlike traditional token standards, BRC-20 does not rely on smart contracts. Instead, it leverages JSON-formatted inscriptions to deploy, mint, and transfer tokens.
👉 Discover how to securely manage Bitcoin-based tokens today.
Today, over 25,000 BRC-20 tokens have been deployed, many of them meme coins like $ORDI, $PEPE, and $SHIB. These developments have significantly increased transaction volume on the Bitcoin network—sometimes surpassing regular BTC transfers—and generated higher fees for miners.
What Are Bitcoin Ordinals?
Bitcoin Ordinals, also known as inscriptions, are digital artifacts inscribed directly onto satoshis using the Ordinals protocol, created by developer Casey Rodarmor in January 2023.
Each satoshi is assigned a unique ordinal number based on its mining order, making it possible to attach metadata—such as artwork, poems, or videos—to specific satoshis. Once inscribed, these items become non-fungible and can be transferred across the Bitcoin network just like any other asset.
Unlike Ethereum NFTs, which are governed by smart contracts (e.g., ERC-721), Bitcoin Ordinals exist entirely on-chain without external dependencies. The term "inscription" is preferred over "NFT" by the protocol’s creator to emphasize their immutable, data-rich nature.
These inscriptions are fully stored within Bitcoin’s blockchain, ensuring permanence and resistance to censorship. They open new creative avenues for artists and collectors while maintaining the robust security of the Bitcoin network.
For those interested in exploring live inscriptions, platforms like ordinals.com allow browsing of recently inscribed content—from pixel art to full PDFs.
BRC-20 Tokens: Fungible Assets on Bitcoin
The BRC-20 standard—short for Bitcoin Request for Comment 20—was introduced by on-chain analyst Domo on March 8, 2023. Inspired by Ethereum’s ERC-20, BRC-20 enables the creation of fungible tokens on Bitcoin through Ordinal inscriptions containing JSON data.
Key operations in BRC-20 include:
deploy: Define a new token (set ticker, max supply, mint limit)mint: Create new tokens up to the defined limittransfer: Send tokens between addresses
Example of a deploy inscription:
{
"p": "brc-20",
"op": "deploy",
"tick": "ordi",
"max": "21000000",
"lim": "1000"
}This creates a token named ordi with a total supply cap of 21 million and a maximum of 1,000 tokens mintable per transaction.
Importantly, BRC-20 tokens do not use smart contracts. Their state is tracked off-chain by indexing inscription data—a major difference from ERC-20 tokens. This makes BRC-20 more experimental and less integrated with DeFi ecosystems.
As of now, BRC-20 tokens collectively hold a market capitalization under $500 million—small compared to ERC-20’s multi-billion-dollar ecosystem—but growing rapidly due to community interest in Bitcoin-based meme coins.
BRC-20 vs ERC-20: Key Differences
While both standards enable fungible tokens, their technical foundations and use cases differ significantly.
| Feature | BRC-20 | ERC-20 |
|---|---|---|
| Blockchain | Bitcoin | Ethereum |
| Consensus | Proof-of-Work | Proof-of-Stake |
| Execution Layer | Ordinal inscriptions (JSON in satoshis) | Smart contracts |
| Token Identification | Inscription ID and number | Contract address |
| Interoperability | Limited; no native DeFi integration | High; widely used in DEXs, lending protocols |
| Wallet Support | UniSat, Xverse, Hiro, Ordinals Wallet | MetaMask, Trust Wallet |
Because BRC-20 lacks smart contract functionality, it cannot natively interact with decentralized applications (dApps) or automated financial protocols. Transactions must be manually processed and validated via indexing services.
In contrast, ERC-20 tokens power much of Ethereum’s DeFi ecosystem—from Uniswap trades to Aave loans—thanks to their programmable nature.
Despite limitations, BRC-20 brings novelty: token issuance on the most secure blockchain in existence, with minimal reliance on complex code.
Market Size and Adoption Trends
BRC-20 is still in its infancy. Since its launch in early 2023:
- Over 24,677 tokens have been deployed
- Total market cap remains below $500 million
- Most tokens are speculative meme coins
Compare this to Ethereum’s ecosystem:
- Over 500,000 ERC-20 tokens
- Combined market cap exceeding $100 billion
However, BRC-20’s growth has caused noticeable network effects:
- BRC-20 transactions briefly accounted for over 60% of all Bitcoin activity
- Congestion led to fee spikes and temporary withdrawal halts on exchanges like Binance
- Miners benefited from increased transaction revenue
This surge highlights Bitcoin’s evolving role—not just as digital gold but as a platform for cultural and financial experimentation.
Tools and Wallets for BRC-20 and Ordinals
To interact with Ordinals or BRC-20 tokens, you need a wallet that supports Taproot addresses (starting with bc1p) and understands inscription data.
Popular options include:
UniSat Wallet
A leading browser extension supporting both Ordinal inscriptions and BRC-20 minting/trading. Offers built-in marketplace access and real-time indexing.
Xverse
User-friendly web and mobile wallet with growing support for Bitcoin L2s and upcoming Lightning Network integration.
Hiro Wallet
Originally built for Stacks, now supports Bitcoin Ordinals and provides cross-chain Web3 experiences.
Ordinals Wallet
Simple interface for creating, buying, and selling inscriptions directly from your browser.
All these tools allow users to explore marketplaces, mint tokens, and manage .sats names—decentralized identifiers similar to Ethereum’s ENS.
Marketplaces for Bitcoin NFTs and BRC-20 Tokens
Several platforms facilitate trading and discovery:
These open marketplaces let users buy Ordinal NFTs, trade BRC-20 tokens, or even register human-readable .sats names for easier sharing.
Block explorers like ordiscan.com provide deep insights into inscription history, ownership trails, and transaction details—essential for verifying authenticity.
Frequently Asked Questions (FAQ)
Q: Can I store BRC-20 tokens in any Bitcoin wallet?
A: No. Only wallets supporting Taproot addresses (bc1p) and Ordinal indexing can properly handle BRC-20 tokens. Sending them to legacy addresses may result in permanent loss.
Q: Are BRC-20 tokens secure like BTC?
A: While secured by Bitcoin’s underlying consensus, BRC-20 relies on experimental indexing methods. There's no standardized verification—always verify inscriptions independently.
Q: Do BRC-20 tokens work with DeFi apps?
A: Not currently. Without smart contracts, they cannot integrate with lending platforms or DEXs. Their utility is largely speculative or collectible.
👉 Stay ahead with secure tools built for next-gen Bitcoin assets.
Q: How do I buy $ORDI or other BRC-20 tokens?
A: You can purchase them via supported wallets like UniSat or through exchanges such as Crypto.com and Gate.io—but only if deposited into a Taproot-compatible address.
Q: What are .sats names?
A: Similar to .eth domains on Ethereum, .sats names are human-readable identifiers linked to your Bitcoin address. They work across Nostr and compatible explorers.
Q: Is the Ordinals protocol officially supported by Bitcoin Core?
A: No. It's a community-driven layer built atop existing consensus rules. It doesn’t require changes to Bitcoin’s base protocol.
Final Thoughts
Bitcoin Ordinals and BRC-20 represent one of the most exciting frontiers in blockchain innovation—proving that even the oldest and most conservative networks can evolve creatively.
While still experimental and lacking the utility of Ethereum-based tokens, they demonstrate growing demand for on-chain ownership, decentralized identity, and community-driven value creation—all anchored in Bitcoin’s unmatched security model.
As tooling improves and developer interest grows, we may see new applications emerge—from tokenized real-world assets to decentralized social layers—all running natively on Bitcoin.
👉 Secure your position in the future of Bitcoin innovation now.
Whether you're an artist minting your first inscription or an investor exploring emerging trends, understanding Ordinals, BRC-20, and their relationship to established standards like ERC-20 is essential for navigating the next phase of Web3.