The Bitcoin network has long been celebrated for its security, decentralization, and resilience. But in early 2025, a new wave of innovation began reshaping how users interact with Bitcoin—not through smart contracts, but via the Ordinals protocol and its experimental token standard: BRC-20.
Launched by @domodata in March 2025, BRC-20 is not a traditional token standard like Ethereum’s ERC-20. Instead, it's a community-driven experiment that leverages Bitcoin’s native data inscription capabilities to create fungible digital assets directly on the Bitcoin blockchain. This innovation has sparked renewed excitement, with over 30,000 inscriptions minted in a single day—nearly 27,000 of which were text-based BRC-20 records.
Let’s explore how BRC-20 works, how you can deploy, mint, and transfer these tokens, and what this means for the future of Bitcoin’s evolving ecosystem.
What Is BRC-20?
BRC-20 is an experimental fungible token standard built on top of the Ordinals protocol, which allows users to inscribe arbitrary data—like JSON text—onto individual satoshis (the smallest unit of Bitcoin). Unlike ERC-20 tokens that rely on smart contracts, BRC-20 tokens are managed through a set of standardized JSON inscriptions recorded directly on-chain.
These inscriptions follow specific rules and keywords to define token behavior across three core operations:
- Deploy: Initialize a new BRC-20 token
- Mint: Create new tokens under a deployed ticker
- Transfer: Send tokens between addresses
While simple in design, this system enables full token lifecycle management—entirely without smart contracts.
Step 1: Deploying a BRC-20 Token
To launch a new BRC-20 token, you must create a deployment inscription containing specific key-value pairs in JSON format. Here's what each field means:
Required Fields:
p: Protocol identifier. Must be"brc-20"to signal compliance.op: Operation type. Set to"deploy"for deployment.tick: Token ticker. A 4-letter identifier (e.g.,ordi,meme) that uniquely names the token.
Optional Fields:
max: Maximum supply of the token. Once reached, no more tokens can be minted.lim: Limit per mint. Defines how many tokens one inscription can claim (e.g., 1000 per mint).dec: Decimal precision. Defaults to 18 if not specified.
Example:{ "p": "brc-20", "op": "deploy", "tick": "test", "max": "21000000", "lim": "1000", "dec": "18" }
Data from Dune Analytics shows successful deployments of early tokens like $ordi**, **$meme, and $punk, marking the beginning of Bitcoin’s foray into user-defined fungible assets.
Step 2: Minting BRC-20 Tokens
Once a token is deployed, anyone can mint it by creating a new inscription with the following structure:
Required Fields:
p: Still"brc-20"op: Now set to"mint"tick: The ticker of the token being minted (e.g.,"ordi")amt: Amount to mint in this inscription (must be ≤limset during deployment)
Example:{ "p": "brc-20", "op": "mint", "tick": "ordi", "amt": "1000" }
Each mint consumes a small amount of Bitcoin (typically 546 satoshis) and records your claim on-chain. However, minting does not guarantee ownership—more on that later.
Note: If the total supply (max) has already been reached through prior mints, any additional mint attempts will be invalid.
Step 3: Transferring BRC-20 Tokens
Transferring BRC-20 tokens requires another JSON inscription with the operation type set to "transfer". The structure includes:
Required Fields:
p:"brc-20"op:"transfer"tick: Token tickeramt: Number of tokens to send
Optional Fields:
to: Recipient Bitcoin address (used for tracking; not enforced on-chain)fee: Transaction fee indicator (used for analytics)
Example:{ "p": "brc-20", "op": "transfer", "tick": "ordi", "amt": "500", "to": "bc1q..." }
Unlike traditional transfers, BRC-20 transfers are not atomic—they require coordination between sender and receiver to ensure validity and prevent double-spending.
The “First-Come, First-Served” Rule
All BRC-20 operations follow a strict priority order based on blockchain confirmation time:
- Deploy: Only the first successful deployment of a given
tickis valid. Any duplicates are ignored. - Mint: Mints are processed chronologically. If total supply is exceeded, only the earliest valid mints count.
- Transfer: In cases where two transfers occur in the same block, the one with higher transaction fees takes precedence.
This rule ensures fairness in a trustless environment—but also introduces risks around frontrunning and race conditions.
Case Study: The $ordi Token
$ordi was the first BRC-20 token ever deployed. As of now, there are over **23,161 inscriptions** linked to $ordi mints.
Assuming each mint claimed the maximum allowed (1,000 tokens), and with a total cap of 21 million, $ordi is likely fully minted. Any further mint attempts would be invalid.
However, here's a critical point:
🔴 Minting an inscription ≠ Owning the tokens.
Many users mistakenly believe that holding the mint inscription grants them balance rights. But in reality, only the current balance holder can initiate a transfer. If you receive a mint inscription from a bot that first inscribed it to their own wallet and then transferred it to you, your funds may still be at risk—they could transfer the balance before you do.
👉 Learn how to securely manage digital assets and avoid common pitfalls in token ownership.
Always verify your Genesis Transaction on an Ordinals explorer to confirm whether the output went directly to your address.
How to Mint BRC-20 Tokens Using UniSat Wallet
One of the most user-friendly tools for interacting with BRC-20 is UniSat Wallet. Here’s how to use it:
- Visit UniSat Inscription Tool and select BRC-20.
Enter:
- Tick: The token ticker (e.g.,
meme) - Amount: Tokens per inscription (up to the
limvalue) - Repeat Mint: Number of inscriptions to create
- Tick: The token ticker (e.g.,
- Click “Next” to review.
On the next screen:
- Confirm details
- Enter your Bitcoin receiving address
- Choose gas fee level (“Custom” for fastest processing)
- Click “Submit & Pay Invoice”
- Pay the total amount to the provided BTC address
After confirmation, your inscriptions will appear in your wallet—typically with 546 satoshis attached.
⚠️ Important: Some users worry this minimal satoshi amount may not cover future transfer fees. According to UniSat’s Discord team, you can resolve this by adding extra funds to the inscription’s UTXO before transferring.
Frequently Asked Questions (FAQ)
Q: Can I create a BRC-20 token with more than 4 letters?
A: No. The tick field must be exactly 4 lowercase letters or numbers to comply with community standards.
Q: Are BRC-20 tokens compatible with Ethereum wallets?
A: No. BRC-20 tokens exist only on the Bitcoin blockchain and require Ordinals-compatible wallets like UniSat or Xverse.
Q: Is there a way to check my BRC-20 token balance?
A: Yes. Use explorers like Ordinals.com or UniSat’s built-in tracker to view balances based on inscription history.
Q: Can I lose my BRC-20 tokens?
A: Yes—if you transfer an inscription without transferring the underlying balance or if you use unreliable minting bots that retain control.
Q: Do BRC-20 tokens have smart contract functionality?
A: No. All logic is enforced off-chain through community consensus and client-side validation.
Q: What happens when a token’s max supply is reached?
A: No further mints are valid. Only transfers of existing tokens are possible.
Why Does BRC-20 Matter?
Critics argue that BRC-20 is just “writing names on satoshis.” But supporters see it differently: Ordinals unlock expressive freedom on Bitcoin. Just as early web developers started with basic HTML pages, today’s builders are using Ordinals as a canvas—for art, identity, currency, and more.
@domodata refers to himself as an “experimenter,” urging users not to overspend on mints. His vision isn’t about speculation—it’s about exploration.
“Think of Ordinals as a game development kit. Right now, we’ve only built Minesweeper. What comes next could be revolutionary.”
Each inscription adds a layer of meaning to Bitcoin’s immutable ledger. And as more developers join, we may witness entirely new forms of digital ownership emerge—from community tokens to decentralized memes.
👉 Stay ahead of the curve—see how platforms like OKX are supporting next-gen blockchain innovations.
Final Thoughts
BRC-20 may seem rudimentary compared to smart contract platforms—but its simplicity is its strength. By operating within Bitcoin’s constraints, it proves that even the most conservative blockchains can evolve through innovation and community participation.
Whether BRC-20 becomes a lasting standard or fades into crypto history, one thing is clear: Bitcoin’s journey into value diversification has only just begun.
As experimentation continues, tools improve, and awareness grows, we’re witnessing the early stages of a cultural shift—one inscription at a time.
Core Keywords:
BRC-20, Bitcoin, Ordinals protocol, token minting, inscriptions, fungible tokens, blockchain innovation, digital assets