BTC ecological innovation attracts follow BRC-20 tokens reshape Bitcoin future

Bitcoin, as the most well-known Crypto Asset globally, although it has a wide recognition, its underlying layer functions are relatively simple, supporting only basic transactions and unable to execute complex smart contracts. This limitation has somewhat restricted the innovative development of the Bitcoin ecosystem.

However, some developers are striving to break through this limitation by creating new token standards on the Bitcoin network to give Bitcoin more functionality and flexibility. Among them, the BRC-20 token, as an experimental standard, is receiving widespread attention. This token utilizes the Ordinals protocol to achieve the minting and transfer of fungible tokens on the Bitcoin blockchain.

The Ordinals protocol is essentially a system for numbering satoshis (the smallest unit of Bitcoin), allowing users to attach additional data to satoshis, a process known as "inscription." The BRC-20 token leverages this mechanism by inscribing JSON data onto satoshis to enable the deployment, minting, and transfer of token contracts. Currently, the BRC-20 standard supports creating tokens with the deploy function, minting tokens with the mint function, and transferring tokens with the transfer function.

Regarding the attempt to expand functionality on Bitcoin, the co-founder of Ethereum expressed positive support in a recent online discussion. He believes that the emergence of Ordinals and BRC-20 tokens has re-energized the innovative spirit of the Bitcoin community and broken the development stagnation within the ecosystem.

The founder of Ethereum also shared his insights on the future scalability of Bitcoin. He suggested that the best approach is to focus on implementing diversified Layer-2 solutions while exploring ways to enhance the efficiency of the Bitcoin base layer. Layer-2 solutions refer to additional layers built on top of the Bitcoin mainnet to improve transaction speed and reduce costs. Currently, Layer-2 solutions like the Lightning Network are already in practical use.

Overall, the founder of Ethereum gave a positive evaluation of Ordinals and the BRC-20 standard, believing that these innovations reflect the vitality of the Bitcoin ecosystem. His suggestions for the future development of Bitcoin may also spark discussions and feedback with differing viewpoints within the community.

It is worth noting that BRC-20 and Ordinals tokens have not only attracted attention within the blockchain industry but have also piqued the interest of well-known individuals and institutions in other fields. Some prominent investors and artists have publicly expressed their support and interest in these new types of tokens. Additionally, the gaming industry and trading platforms have announced that they will provide development and trading support for BRC-20 tokens. These signs indicate that BRC-20 and Ordinals tokens are gaining broader recognition and participation, which could have a profound impact on the future development of the Bitcoin ecosystem.