🔑Ordinals

In December 2022, Casey Rodarmor, a developer in the Bitcoin community, introduced Ordinals theory. This theory involves numbering each satoshi, tracking and indexing them sequentially, providing a unique identity (ordinal) to the numerical content engraved on each satoshi.

BRC20 tokens represent a distinctive token form based on the Bitcoin open-source protocol Ordinals. They utilize JSON data for deploying token contracts, minting and transferring tokens, using satoshis to store and manage various token information. Representative assets include Ordi, Sats, Trac, Rats, among others. The market value growth of BRC20 tokens serves as an indicator for Ordinals, reflecting the direction of development within the Bitcoin ecosystem, with the current total market value reaching $2.24 billion.

BRC20 tokens exhibit characteristics of simplicity and stability, yet they face challenges related to scalability and security. Handling large-scale token transfers and balance inquiries may lead to performance bottlenecks. Additionally, the ledger resolution and indexing of BRC-20 rely on centralized indexers, posing a risk of centralization malfeasance.