Token Standards Uncovered: Unraveling BRC-20, SRC-20, DRC-20, and ORC-20

Dive headfirst into the electrifying world of Crypto Twitter and brace yourself for an ocean of orange flooding your feed! No, it’s not a sudden worldwide obsession with tangerines, but the fiery signature color of the Taproot Wizards. These wizards are painting the town orange, rallying behind Bitcoin Ordinals with all the zest and zeal of a high-energy campaign. Their mission? To ignite the Bitcoin Ordinals saga with their brand’s distinct, hard-to-miss tangerine touch.

But wait, there’s more to the crypto rainbow than just the orange hue of Bitcoin Ordinals! New token standards are popping up faster than popcorn on movie night, with BRC-20 tokens ruling the roost. We’ve already taken a deep dive into BRC-20 tokens in our previous blog, but there’s a treasure trove of shiny new tokens to discover — SRC-20, DRC-20, and ORC-20. Sure, it’s like trying to keep up with the latest dance trend on a rapidly spinning disco floor, but don’t sweat it — we’re your trusty guide on this wild crypto ride.

In this blog post, we’re taking a deep dive into the newest digital tokens making waves in the crypto world. We’ll put them head-to-head, highlight potential hot spots for investing, and give you tips on how to get the most out of them. Your chance to grasp this essential information — your key to success — is within reach. All you need to do is reach out and grab it.

BRC-20 Token

The BRC-20 token standard is a novel experiment, leveraging ordinal inscriptions of JSON data for the deployment of token contracts. This allows the creation and transfer of tokens within the secure confines of the Bitcoin network. The use of ordinal inscriptions is a smart tactic, circumventing the often complex programmability limitations of Bitcoin.

brc-20

Advantages of BRC-20 Tokens

The BRC-20 tokens come with a bunch of exciting perks. These include fungibility, which allows them to be easily traded on exchanges. The security of these tokens is guaranteed by the proven Bitcoin protocol, providing a robust and trustworthy environment for transactions. Also, the seamless integration of BRC-20 into the Bitcoin ecosystem gives it a definitive edge in the market.

However, not everyone within the Bitcoin community is on board with the concept of ordinals and BRC-20 tokens. Some enthusiasts argue that they contradict Satoshi Nakamoto’s original vision for Bitcoin.

BRC-20 Token Limitations

BRC-20 tokens do have their share of hurdles. The ecosystem of BRC-20 is comparatively smaller than that of ERC-20. Plus, Bitcoin is primarily used as a store of value, not for token creation, which might limit the adoption of BRC-20 tokens. Lastly, the introduction of BRC-20 tokens may lead to an increase in Bitcoin’s transaction fees, also known as ‘gas fees.’

How to Obtain BRC-20 Tokens?

Securing BRC-20 tokens isn’t complicated. You can either mint new tokens, with only gas fees to pay, or purchase them from existing projects through various marketplaces. It provides a chance for everyone to participate and benefit from this new wave of innovation within the Bitcoin ecosystem. Here is a good guide on how you can get your hands on BRC-20 tokens:

SRC-20 Token

In the short span of a month since its inception, SRC-20 tokens have gained significant popularity. One of the key selling points of these tokens, ‘Stamps,’ is their promise of permanence. By storing data in blockchain outputs, Stamps guarantee their durability, making them impossible to prune. The fervor surrounding Stamps is undeniable with over 18,000 Stamps created on the Bitcoin blockchain within a month, surpassing the asset growth of Ordinals in their respective launch period.

How do Bitcoin Stamps Work?

The underlying principle of Stamps is rooted in the open-source Counterparty protocol, traditionally used to issue NFTs by burning Bitcoin to acquire XCP token for smart contract execution. However, Stamps revolutionizes this approach by eliminating the need to burn Bitcoin or use an altcoin. Instead, one can pay for a standard Bitcoin transaction while appending additional information. This can be done through either OP_Return for files under 80 bytes or Fake Multi-Sig Addresses for files over 80 bytes. For larger files, the bare multi-sig option comes in handy.

Comparing Stamps with Ordinals and Inscriptions

Stamps, ordinals, and inscriptions all serve the purpose of adding information to a transaction, but they each have distinct characteristics:

• Unlike ordinals that can be pruned, Stamps cannot.
• Stamps are more resource-intensive compared to inscriptions.
• Stamps can be destroyed if the tied UTXO set is spent.
• Ordinals employ Taproot for single signature transactions, while Stamps use multi-sig with fake data.
• Inscriptions are more cost-effective due to the SegWit discount and compact transaction construction.

Key SRC-20 Resources

The following websites are valuable resources for those interested in SRC-20 tokens:

• Stampchain.io: This is the go-to tool for all things related to Stamps and SRC-20. All stamped data can be located here.
• Stampsrc.github.io: Think of this as the local CoinMarketCap for SRC-20 tokens. Here, users can track deployed tokens, total supply, and mints. Be aware that your token may not be minted in time as mint transactions are executed sequentially.
• Stampchain.io/src20: This tool provides features to mint, deploy, and transfer SRC-20 tokens, and allows for free cost calculation prior to any transaction.
• BitcoinStamps Telegram community: This official community, created by Mike, serves as a hub for discussions about Stamps and offers a platform for token trade offers.

DRC-20 Token

If you’re an avid follower of Elon Musk’s tweets, you’ll know how his public endorsements have led to a surge in Dogecoin’s popularity. However, some fans of the Shiba Inu-inspired cryptocurrency have gone a step further to enhance the potential of the Doge network. Introducing DRC-20 tokens — an ecosystem designed to function within the Dogecoin network.

What Are DRC-20 Tokens?

DRC-20 tokens represent a burgeoning ecosystem within the Doge network. In essence, these tokens can be minted by anyone with a minimal investment. The process is easy and straightforward, requiring only five steps and a minimal gas fee of 4 DOGE. Currently, the DRC-20 tokens can be traded exclusively via Discord groups, but there’s an active development effort towards building marketplaces. To explore the available tokens or start minting, simply visit drc-20.org.

How to Mint DRC-20 Tokens?

Here is the simple 5-step process:

1. Create a dpalwallet: Visit dpalwallet.io, created by @mzydev, to download, create, set your password, and save your seed phrase.
2. Deposit Doge in your wallet: Make a deposit to your wallet from any cryptocurrency exchange (CEX).
3. Go to drc-20.org: Look for the token you want to mint and click on ‘Mint’.
4. Follow the steps and confirm the transaction: Follow the instructions and send DOGE to the address provided.
5. Check your wallet: After the token is minted, it will be directly sent to your wallet. To verify its arrival, check out the ‘Ordinals’ section in your wallet.

ORC-20 Token

As the crypto world continues to innovate and evolve, so too do the token standards that underpin it. Enter the ORC-20 tokens, a version of BRC-20 tokens but with some significant improvements.

https://dune.com/ordinalstats/orc-20

What is ORC20?

The ORC20 token standard is essentially an enhanced version of the BRC20 token standard, designed to tackle some of the key limitations of its predecessor. The BRC20 token standard faces three major limitations:

1. Limited naming space (restricted to just four letters)
2. Immutable supply and mint limits after deployment
3. The potential for double spending

The creation of the ORC20 token standard represents a significant step forward in the tokenization process within the Bitcoin network. These tokens offer greater flexibility and security, making them a popular choice for many users. For more detailed information, refer to the @OrcDAO documentation.

The Difference Between ORC20 and BRC20

With the introduction of ORC20 tokens, these limitations have been addressed. ORC20 allows users to:

• Mint any token with a flexible naming space
• Have upgradable numbers for supply and mint
• Use the UTXO model to prevent double-spending
• Cancel transactions as necessary

One of the key improvements of the ORC20 standard lies in its use of the UTXO model to prevent double spending. Double spending is a type of payment attack where attackers mine a longer chain of blocks to replace the original transaction. This can lead to losses for the sender. To counter this, each transaction creates UTXOs that can only be spent once. When a new transaction is broadcast, nodes validate it by checking the UTXOs to ensure they haven’t been spent before, effectively eliminating the risk of double spending.

Minting ORC20 Tokens

To mint ORC20 tokens, you’ll need to follow a few steps:

1. Download a Unisat wallet from the Chrome store
2. Ensure you have at least 0.001 BTC in your wallet (You can buy BTC from a CEX)
3. Go to the @unisat_wallet Inscribe page, click text, then click bulk
4. Visit loveords.com/orc20
5. Copy {“p”:”orc-20", “tick”:”pepe”, “id”:”3387929", “op”:”mint”, “amt”:”10000"}
6. Replace the “pepe” and “3387929” with the token you want to mint

1. Copy and paste the same code five times (if you want to mint it 5 times)
2. Verify your code and ensure you’re connected to the right BTC address
3. Select the gas fee you’re willing to offer (Usually, normal is sufficient)
4. Submit and pay with your Unisat wallet

To verify if your ORC20 transaction proceeded, check your wallet. If you see nothing, go to ordiscan.com, click ‘Inscription #’, and if you see the context, your transaction was successful.

Buying and Selling ORC20 Tokens

As of now, there is no official marketplace for ORC20 tokens. Some OTC marketplaces exist within Telegram and Discord groups, but for safety reasons, it’s recommended to only trade on a trustworthy marketplace.

Conclusion

While the field of cryptocurrency tokens is constantly changing and growing, keeping abreast of these changes can prove immensely beneficial. With every new token standard introduced, we move a step closer to a more secure, efficient, and inclusive digital financial system. From purchasing to minting, and even trading tokens, opportunities abound in this vibrant landscape. It’s now up to us, as active participants in this dynamic ecosystem, to embrace these opportunities and make the most of the flourishing world of cryptocurrency tokens.