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BRC-20 is an experimental fungible token standard using ordinal inscriptions on Bitcoin. Should Bitcoin only be used as digital gold, or should it support more sophisticated functionality? The introduction of ordinal NFTs sparked a new wave of interest in Bitcoin, with the community beginning to experiment with the potential of using the Bitcoin network as a way of storing immutable data. One such novel experiment is an attempt to create fungible tokens natively on Bitcoin through a standard called BRC-20. BRC-20 tokens are a clever way to circumvent the programmability limitations of Bitcoin and create semi-fungible tokens using ordinal inscriptions. In this post, we’ll explore BRC-20 tokens, examine how they work, and consider their viability as a token standard on Bitcoin.
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