BRC-20 Tokens open doors for developers to create their own decentralized applications (dApps) with unique economies on the bitcoin network. This encourages community participation through internal currencies and attracts investment through innovative token sale structures.
BRC-20 tokens are fungible tokens built on the bitcoin network using the Ordinals protocol. It also uses inscriptions containing JSON (JavaScript Object Notation) data to facilitate the implementation of token contracts, token minting, and token transfer. Currently, the BRC-20 token standard offers the ability to create a BRC-20 token using the deploy function, mint a specified number of BRC-20 tokens using the minting function, and transfer a designated number of BRC-20 tokens to through transfer. function.
BRC-20 and ERC-20 share some similar features and functional concepts, but are not identical due to their different underlying blockchains and implementation details. One of the differences is that BRC-20 tokens operate on the bitcoin blockchain, while ERC-20 tokens reside on the ethereum blockchain. This leads to differences in technical implementations and transaction fees.
Related Reading: How to Buy and Trade BRC-20 Tokens on the bitcoin Network
Similar to ERC-20 Tokens, BRC-20 tokens are fungible, meaning they can be exchanged one for one for the same value. They can be created, transferred and traded on the bitcoin network using decentralized marketplaces such as Magical Eden with compatible wallets and decentralized exchanges that support the BRC-20 standard.
BRC-20 tokens breathe vitality into the bitcoin network, acting as programmable extensions that expand reach beyond basic transfers. They power the bitcoin network by enabling the development of DApps, fostering communities, and facilitating ownership of real-world assets. This dynamic frontier presents exciting opportunities for engagement, incentives, and innovation.
However, it is essential to navigate the technical complexities and embrace the evolving infrastructure. Still a work in progress, BRC-20 tokens possess tremendous potential to reshape the future of bitcoin, revealing a multitude of tokenized possibilities along the way.
Now, let's dive into the exciting world of creating your own BRC-20 tokens! As we mentioned, platforms like Magical Eden Provide a gateway to create and market these digital assets.
Creating BRC-20 tokens on the bitcoin network
Creating BRC-20 tokens involves defining the token's parameters, such as its name, symbol, and total supply, as well as any additional functionality you want to incorporate, such as token minting or burning restrictions. Once the smart contract is written, it must be compiled into bytecode and deployed to the bitcoin blockchain using the tools provided by the platform. This deployment process typically involves paying gas fees to execute the necessary transactions. Platforms like Magic Eden allow users to create their own BRC-20 tokens.
First, visit the Magical Eden. Homepageand click “Connect Wallet” in the upper right corner, as shown in the image below:
For the best wallets to use with BRC-20 tokens on the bitcoin network, check out here.
<img decoding="async" class="alignnone wp-image-572363 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-2.png?w=460&resize=751%2C70″ alt=”BitcoinBRC-20 ” width=”751″ height=”70″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-2.png?w=460&resize=751%2C70 460w” sizes=”(max-width: 751px) 100vw, 751px” loading=”lazy” data-recalc-dims=”1″/>
To start creating your BRC-20 token, it is essential to deploy it first. Follow the instructions below to continue:
Next, click the “Enroll” button. (The Enroll button appears after clicking the “Mint” icon at the top left of the screen.)
<img loading="lazy" decoding="async" class="alignnone wp-image-572365 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-3.png?w=460&resize=751%2C124″ alt=”bitcoin network” width=”751″ height=”124″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-3.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-3.png?w=460&resize=751%2C124 460w” sizes=”(max-width: 751px) 100vw, 751px” data-recalc-dims=”1″/>
Next, click on the “BRC-20” tab at the top of the screen.
<img loading="lazy" decoding="async" class="alignnone wp-image-572366 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-2.png?w=460&resize=705%2C121″ alt=”bitcoin ” width=”705″ height=”121″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-2.png?w=460&resize=705%2C121 460w” sizes=”(max-width: 705px) 100vw, 705px” data-recalc-dims=”1″/>
Then, follow these instructions:
Ticker: Select a four-letter phrase to serve as the unique identifier for your token. For example, the widely recognized BRC-20 tokens have used tickers such as ORDI or OXBT. Sets the maximum number of tokens that will be available for minting. Specify the largest number of tokens that can be minted in a single transaction. Select the desired parameters and click “Next”.
<img loading="lazy" decoding="async" class="alignnone wp-image-572367 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-2.png?w=460&resize=726%2C363″ alt=”BitcoinBRC-20″ width=”726″ height=”363″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-2.png?w=460&resize=726%2C363 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-2.png?w=360 360w” sizes=”(max-width: 726px) 100vw, 726px” data-recalc-dims=”1″/>
Choose your desired bitcoin network fee from the available options such as Low, Medium or High. After making your selection, proceed by clicking the “Enroll” button. (Please make sure the chosen ticker is not already implemented to avoid transaction failures. Magic Eden will automatically check this unless instructed otherwise.)
<img loading="lazy" decoding="async" class="alignnone wp-image-572368 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-2.png?w=460&resize=614%2C378″ alt=”Minting of BRC-20″ width=”614″ height=”378″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-2.png?w=460&resize=614%2C378 460w” sizes=”(max-width: 614px) 100vw, 614px” data-recalc-dims=”1″/>
Now, wait for the bitcoin network to confirm the transaction. Confirmation times may vary.After confirmation, check your wallet. Upon successful confirmation, you will receive a “Deploy” inscription, which means you can proceed to mint your tokens. The example provided illustrates a “Deploy” inscription within the Xverse wallet.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572370 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-2.png?w=316&resize=316%2C460″ alt=”bitcoin Magic Eden” width=”316″ height=”460″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-2.png?w=352 352w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-2.png?w=316&resize=316%2C460 316w” sizes=”(max-width: 316px) 100vw, 316px” data-recalc-dims=”1″/>
Mint your BRC-20 token
After you have successfully deployed your BRC20 token, follow these instructions to mint it. Return to the 'Enroll Ordinals' modal located on the page Magical Eden Homepage. Within the modal, click on the “BRC-20 Mint” tab to continue.
<img loading="lazy" decoding="async" class="alignnone wp-image-572371 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-2.png?w=460&resize=760%2C71″ alt=”Magical Eden” width=”760″ height=”71″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-2.png?w=460&resize=760%2C71 460w” sizes=”(max-width: 760px) 100vw, 760px” data-recalc-dims=”1″/>
Enter the four-letter phrase you implemented above, indicate the desired number of tokens you want to mint, and specify the number of minting inscriptions you want to generate.
Note: The maximum number you can mint per transaction must be the same as the value set in the “Mintage Limit” during the implementation process. Now, click on the “Next” button and select the network rate. After selecting the desired rate, click the “Enroll” button. In the following example, 63 BRC-20 tokens are minted in three lots of 21 each.
<img loading="lazy" decoding="async" class="alignnone wp-image-572372 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-2.png?w=449&resize=517%2C528″ alt=”BRC-20 Tokens” width=”517″ height=”528″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-2.png?w=500 500w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-2.png?w=449&resize=517%2C528 449w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-2.png?w=42 42w” sizes=”(max-width: 517px) 100vw, 517px” data-recalc-dims=”1″/>
A set of flawless transaction links will be provided. Please note that confirming mint transactions once again may take some time.
<img loading="lazy" decoding="async" class="alignnone wp-image-572373 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-2.png?w=460&resize=641%2C397″ alt=”bitcoin network” width=”641″ height=”397″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-2.png?w=460&resize=641%2C397 460w” sizes=”(max-width: 641px) 100vw, 641px” data-recalc-dims=”1″/>
After confirmation, you will receive Mint inscriptions in your connected wallet.
<img loading="lazy" decoding="async" class="alignnone wp-image-572379 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-10-2.png?w=342&resize=609%2C363″ alt=”Minted BRC-20 Tokens” width=”609″ height=”363″ data-recalc-dims=”1″/>
Congratulations, you have successfully created your first BRC-20 token!
Conclusion
BRC-20 tokens offer fungible tokenization capabilities within the bitcoin network, enabling a variety of applications and use cases. As the blockchain industry advances, both NFTs and BRC-20 tokens take on crucial roles in shaping the trajectory of digital property and decentralized finance (DeFi).
BRC-20 tokens introduce fungible tokenization capabilities within the bitcoin network, providing the ability to create and exchange exchangeable tokens. This opens up a wide range of possibilities for various applications and use cases within the blockchain industry. As the blockchain ecosystem continues to advance, both NFTs and BRC-20 tokens play a critical role in shaping the direction of digital property and decentralized finance, driving innovation, and paving the way for a more inclusive and decentralized financial system.
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
