BRC-20 Tokens: What They Are, How They Work, and Why They Matter
When you think of tokens on a blockchain, you probably imagine Ethereum or Solana. But BRC-20 tokens, a type of token built directly on the Bitcoin blockchain using inscriptions. Also known as Bitcoin ordinals, they let people create and trade tokens without needing a separate smart contract platform. This is a big deal because Bitcoin wasn’t designed for tokens—it’s built for secure, simple payments. BRC-20 changed that by using a loophole in how Bitcoin handles data.
BRC-20 tokens work by embedding JSON data into Bitcoin transactions through inscriptions, a method of storing text, images, or code directly on the Bitcoin blockchain. These inscriptions act like digital receipts that track token creation, transfers, and balances. Unlike ERC-20 tokens on Ethereum, which rely on smart contracts, BRC-20 tokens are just data points written into Bitcoin’s ledger. That means they’re as secure as Bitcoin itself—but also slower and more expensive to use. You need to pay Bitcoin fees to move them, and transactions can take minutes or hours to confirm.
The rise of BRC-20 tokens in 2023 turned Bitcoin into a playground for token projects. People launched tokens like ORDI, the first widely traded BRC-20 token, created as a meme coin on Bitcoin, and others like PEPE, a Bitcoin-based version of the popular Ethereum meme token. These tokens didn’t need teams, whitepapers, or fundraising—they just needed someone to write the inscription and a community to trade them. It was raw, chaotic, and surprisingly effective. But it also brought risks: scams, broken contracts, and wallets that couldn’t handle the data.
Today, BRC-20 tokens are still active, but the hype has cooled. Many projects vanished. Others became niche. But the idea stuck: Bitcoin can do more than just store value. It can carry digital assets, too. That’s why you’ll find posts here about BRC-20 tokens that dig into real cases—like failed launches, wallet compatibility issues, and how traders use mempool data to spot upcoming token drops. Some of these tokens have zero value. Others are just experiments. But they all show how creative people can be when they push boundaries.
If you’ve ever wondered how a token can exist on a blockchain that doesn’t support smart contracts, or why people spend Bitcoin fees to send a meme coin, this collection answers those questions. You’ll see what worked, what blew up, and what to watch out for if you ever try to interact with these tokens yourself.