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BRC-20 tokens lead the wave of innovation in Bitcoin, supported by the founder of Ethereum.
Bitcoin, as the most well-known Crypto Asset globally, primarily supports simple transactions at its base layer and cannot execute complex smart contracts calculations. This limitation hinders the innovation and development of the Bitcoin ecosystem to some extent.
However, some developers are working to break this limitation. They are attempting to give Bitcoin more functionality and flexibility by creating new token standards on the Bitcoin network. Among them, the BRC-20 token is a highly regarded experimental project that uses the Ordinals protocol to mint and transfer fungible tokens on the Bitcoin blockchain.
The Ordinals protocol is a system for numbering satoshis (the smallest unit of Bitcoin), allowing users to attach additional data to satoshis, a process known as "inscribing". BRC-20 tokens deploy token contracts, mint, and transfer tokens by inscribing JSON data on Ordinals. Currently, the BRC-20 standard supports creating tokens using the deploy function, minting tokens using the mint function, and transferring tokens using the transfer function.
The co-founder of Ethereum expressed support for this innovation during an online discussion. He believes that Ordinals and BRC-20 tokens have revitalized the "builder culture" of Bitcoin and are a strong response to the "stagnation" politics within the Bitcoin ecosystem.
Regarding the future expansion of Bitcoin, the Ethereum founder suggested that the best approach is to focus on implementing different types of Layer-2 solutions while exploring ways to improve the efficiency of the Bitcoin base layer. Layer-2 solutions refer to building additional layers on top of the Bitcoin base layer to increase transaction speed and reduce costs. Currently, the Lightning Network is a well-known Layer-2 solution.
Overall, this Ethereum founder expressed affirmation and encouragement towards Ordinals and the BRC-20 standard, believing that these are manifestations of Bitcoin's innovation and development. His suggestions for the future development of Bitcoin may trigger widespread discussion within the Bitcoin community.
The BRC-20 and Ordinals tokens have not only gained recognition from insiders in the Crypto Assets field, but have also attracted attention from well-known individuals and institutions in other sectors. For example, famous investor Mark Cuban revealed that he holds some BRC-20 tokens and praised them as "cool." Renowned artist Beeple also expressed interest in Ordinals and purchased some BRC-20 tokens. Additionally, some gaming companies and trading platforms have announced support for Ordinals, providing development and trading services for BRC-20 tokens. These indicate that the BRC-20 and Ordinals tokens have garnered widespread attention and participation beyond the Crypto Assets field.