With the advent of blockchain technology, we’ve witnessed an impressive evolution in how value is transferred and represented digitally. Tokens have played a significant role in this evolution, with standards such as Ethereum’s ERC-20 and Binance Smart Chain’s BEP-20 becoming prevalent in the cryptocurrency space. However, a newer token standard is catching the attention of crypto enthusiasts: Ordinals.
Ordinals are a mechanism that allows for the creation of tokens on blockchains that traditionally do not support smart contracts, such as Bitcoin, Bitcoin SV, and Dogecoin. These tokens—known as BRC-20, BSV-20, and DRC-20, respectively—are shaking up the crypto world, offering new opportunities for tokenization across various blockchain networks.
BRC-20 Tokens
The BRC-20 token standard represents a significant step in Bitcoin’s evolution. This standard allows for the creation of fungible tokens on the Bitcoin network using a process called ordinal inscription. This process involves attaching a JSON file to a satoshi—the smallest unit of Bitcoin—through Bitcoin ordinals. This JSON file defines the characteristics of the BRC-20 token, including its supply, minting limit, and identity. Upon successful deployment, any Bitcoin ordinal wallet can mint the token.
BSV-20 Tokens
Similarly, the BSV-20 token standard allows for the creation of tokens on the Bitcoin SV network. The creation process involves inscribing a data file and a content-type on a single satoshi, which is locked with a script. The inscribed satoshi can then be transferred to another wallet, much like any other cryptocurrency transaction.
To mint BSV-20 tokens, you will require a small amount of BitcoinSV (BSV). The cost for minting a token is typically around $0.001. The minting process is relatively straightforward once you have your BSV in place. You begin by creating an inscription, which requires a single transaction. This involves input from any valid UTXO and the creation of two outputs. The first output locks exactly 1 satoshi with a script that includes the inscription, which is typically a P2PKH script. The inscription script is then appended to this locking script. This inscription includes a data file and a content-type that define the token’s characteristics. Once this has been done, the second output acts as change. Following this, the inscribed satoshi, now a BSV-20 token, can be transferred to another wallet like any other cryptocurrency transaction. It’s important to note that you can also append to the inscriptions on an ordinal by inscribing the same satoshi again, allowing for modifications and updates to your BSV-20 token after it has been minted.
DRC-20 Tokens
DRC-20 Tokens are an experimental token standard on the Dogecoin blockchain, similar in concept to BRC-20 tokens on the Bitcoin blockchain. This innovative standard aims to enhance the fungibility of the Dogecoin network by leveraging off-chain balance states. This is achieved through a set of functions: deploy, mint, and transfer. The deploy function initiates the creation of a DRC-20 token. The mint function then generates a specific quantity of the token. Finally, the transfer function facilitates the movement of a specified amount of DRC-20 tokens between addresses.
The DRC-20 standard invites the Dogecoin community to experiment and contribute to its development. Just like BRC-20 tokens, DRC-20 tokens are created by attaching data to Dogecoin through Doginals (Dogecoin’s equivalent of Bitcoin’s ordinals). The Dogecoin network decodes this information once the tokens are deployed. These tokens can then be minted and spent like other cryptocurrencies on the Dogecoin network. The creation of DRC-20 tokens represents a significant technological progression for Dogecoin, making it possible for enthusiasts to create, mint, and transact tokens on the Dogecoin blockchain just as they would on other blockchain networks like Ethereum and Bitcoin. While the DRC-20 standard is still being explored and refined, it represents a promising development in the ongoing evolution of the Dogecoin network.
Getting Started With Ordinal Tokens
The process of minting ordinal tokens requires a wallet that supports the respective blockchain network and the ability to interact with the token standard’s protocol. For BRC-20 tokens, a Bitcoin ordinal wallet is necessary. For BSV-20 tokens, any valid UTXO can be used for the creation process. It’s recommended that beginners start with a small investment to familiarize themselves with the process.
As this technology continues to develop, more resources and platforms are likely to emerge, making the process more accessible to beginners. For now, the websites brc-20.io, bsv20.io, and drc-20.org can be helpful starting points to explore BRC-20, BSV-20, and DRC-20 tokens, respectively.
Conclusion
The introduction of ordinals and their corresponding token standards represents a new frontier in the world of cryptocurrencies. As we continue to explore this new terrain, it’s clear that the potential for innovation is vast. Whether you’re a seasoned crypto enthusiast or a newcomer to the space, there’s no better time than now to start exploring the world of ordinal tokens.