What Is BRC-20? Exploring the New Bitcoin Token Standard

2025-06-26, 14:45

In 2025, BRC-20 has emerged as a phenomenon in the crypto world, marking a breakthrough moment where the Bitcoin network—originally not designed for smart contracts—can now host tokens similar to ERC-20 on Ethereum. So, what is BRC 20 and why is it capturing the attention of investors, traders, and developers? Let’s explore in this article.

What Is BRC 20 and How Does It Work?

BRC-20 is a token standard built on the Bitcoin network using a mechanism known as Ordinals and In_script_ions. Unlike Ethereum, where smart contracts handle logic and state, BRC-20 does not rely on contracts. Instead, it stores metadata directly on satoshis—the smallest unit of Bitcoin.

Users can mint, transfer, and deploy BRC-20 tokens by interacting with in_script_ions containing structured JSON data. Each action—mint, deploy, or transfer—requires a separate in_script_ion, creating an off-chain-driven token logic running on top of Bitcoin’s secure infrastructure.

Live Prices of Top BRC-20 Tokens on Gate

As of June 2025, ORDI—the first BRC-20 token—is trading at approximately $7.55 on Gate, with a 24-hour trading range between $6.49 and $7.62. The trading volume in the last 24 hours exceeds $4.42 million USDT, indicating growing speculative interest and high liquidity.

Another prominent BRC-20 token, SATS, continues to capture attention in the micro-token space, priced around $0.0000003.

Users can monitor ORDI/USDT and SATS/USDT live on Gate to stay updated on price movements, market sentiment, and trading opportunities in the evolving BRC-20 landscape.

Why Is BRC 20 Creating So Much Hype?

Despite being experimental, BRC-20 is generating buzz due to several compelling reasons:

Simplified Token Creation: Anyone can deploy a BRC-20 token using a single JSON line—no smart contract knowledge needed.
Built on Bitcoin’s Security: Data inscribed on the Bitcoin chain is immutable and benefits from Bitcoin’s robust consensus.
High Decentralization: Token operations happen directly on the Bitcoin blockchain, without relying on intermediaries.

However, without smart contract logic, BRC-20 depends heavily on off-chain services like wallets and explorers to handle transaction logic and indexing.

Real-World Applications of BRC 20 Tokens

Although still in early development, BRC-20 tokens are starting to gain utility:

Trading and Investment: ORDI, SATS, and VMPX are actively traded and have attracted speculative capital.
NFT and GameFi Integrations: Some projects are experimenting with BRC-20 tokens as in-game currencies or NFT-based rewards.
Bitcoin-Based DeFi Ecosystem: Platforms like Unisat and BRC-20-compatible wallets serve as DeFi layers for Bitcoin, enabling swap functions, liquidity provision, and peer-to-peer markets.

Trading BRC-20 Tokens on Gate

Gate is among the first platforms to support BRC-20 trading, offering reliable access to top-performing tokens. Notable BRC-20 trading pairs on Gate include:

ORDI/USDT
SATS/USDT
VMPX/USDT

Traders on Gate can:

Track real-time price charts and trends
Use advanced tools like RSI, MACD, and Bollinger Bands
Place limit orders, stop-loss orders, and OCO trades
Participate in airdrops and potential staking events for BRC-20 tokens

Advantages and Limitations of BRC 20

Standardizing tokens on Bitcoin through BRC-20 opens new frontiers, but it’s not without trade-offs. Here’s a balanced view:

Advantages:

Enables tokenization on Bitcoin without modifying its core protocol
Leverages Bitcoin’s unmatched security
Expands digital asset innovation on the world’s most trusted blockchain

Limitations:

Dependent on third-party wallets and tools for full usability
No native smart contract logic
High transaction fees when the Bitcoin network gets congested

Investment Risks Associated with BRC 20 Tokens

In addition to technical limitations, investors should be aware of risks specific to the BRC-20 space, especially given its experimental nature:

Lack of Formal Standardization: As a community experiment, BRC-20 is not endorsed by Bitcoin core developers.
Scams and Imitation Tokens: Fake or duplicate tokens can easily be created, posing risks to less experienced users.
Low Liquidity for Smaller Tokens: Not every BRC-20 token is listed on major platforms, making entry and exit more difficult.
No Smart Contracts: Limits utility and feature expansion, such as staking or farming.

Conclusion

BRC-20 represents a bold experiment to expand the capabilities of Bitcoin beyond just being digital gold. With rapid adoption and community interest, the standard could spark new token markets and applications within the Bitcoin ecosystem. However, caution is advised. Investors should monitor project updates, evaluate token legitimacy, and stick to trusted platforms like Gate to reduce risk. The future of BRC-20 is still being written, but it may become a significant part of Bitcoin’s next phase—beyond simple value storage and into programmable utility.

Author: Blog Team

*The content herein does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions.

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