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What Investors Need to Know About BRC-20 Tokens

What Investors Need to Know About BRC-20 Tokens

Previously, I have talked about Ordinal inscriptions and what it means for the future of Bitcoin. Here’s an update on the BRC-20 token.

BRC-20 is a new experimental fungible token standard designed for the Bitcoin blockchain, inspired by Ethereum’s ERC-20 token. In the last few weeks, you may have heard this term from your friends or seen posts on social media about BRC-20 memes and NFTs.

As of May 2, the combined market capitalization of over 8,800 BRC-20 tokens was $137 million, a remarkable 682% increase from $17.5 million just a week ago. But a week after, as of May 9, the market capitalization of BRC-20 Bitcoin tokens had exceeded $1 billion, and within the previous 24 hours, there was a total trading volume of $207.7 million. These tokens can be tracked on brc-20.io or traded on Ordswap. Some of them are also available on Gate. As more wallet providers and more centralized exchanges integrate, I believe there will be more movements within their ecosystem.

What is BRC-20?

This standard was created for the Bitcoin blockchain by an anonymous on-chain analyst called Domo. It is being used to issue and transfer fungible tokens on the Bitcoin blockchain. BRC-20 is similar to the ERC-20 token standard used on the Ethereum blockchain but specifically designed for Bitcoin. BRC-20 uses Ordinal inscriptions of JavaScript Object Notation to deploy token contracts and mint and transfer tokens.

BRC-20 tokens are stored on the Bitcoin base chain and built with the help of Ordinals and Inscriptions. An Inscription or Ordinal is a unique number attached to a specific piece of digital content, such as an image, video, or text, stored on the Bitcoin blockchain. Inscriptions are generated using a special protocol that ensures their uniqueness and immutability, making them valuable digital assets that can be bought, sold, and traded just like NFTs. These tokens can be attributed to satoshis and then traded or swapped with others, just like other tokens.

Adding on to the above points and to give some context, BRC-20 tokens were made possible by a loophole in Bitcoin’s 2021 Taproot upgrade, which allowed for the attachment of small amounts of arbitrary data to each transaction to limit the amount of data stored on the blockchain. BRC-20 tokens use this feature to add additional data to individual satoshis, which can then be used to create various types of assets and tokens.

How different are BRC-20 and ERC-20?

The BRC-20 token standard utilizes the proof of work (PoW) mechanism, while the ERC-20 uses the proof of stake (PoS) mechanism. PoW is a consensus mechanism in blockchain networks to validate transactions and add new blocks to the chain.

In PoW, miners compete against one another to solve complex mathematical problems using high-powered computational devices. PoS protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency.

Unlike PoW, which relies on solving complex computational problems, PoS requires validators to stake a certain amount of cryptocurrency before participating in the consensus process. Validators are chosen based on the amount of cryptocurrency they have staked, with those who have staked more having a higher probability of being selected to validate transactions.

The significant difference between the two networks is EVM (Ethereum virtual machine) compatibility. The BRC-20 token standard does not support smart contracts, which limits the ability of developers to create different programmable tokens and financial products.

Understanding memecoins popularity

Due to the explosive growth of the BRC-20 token standard, particularly with the introduction of memecoins such as Pepe and Memetic, these coins are becoming increasingly popular on BRC-20. In just four days, the BRC-20 token market capitalization has soared from $95 million to $279 million, with over 13,530 tokens currently in circulation. The top five BRC-20 tokens, Ordi, Pepe, Piza, Memetic, and Moon, make up 86.55% of the total market capitalization.

Memecoins may be moving to BRC-20 due to the Ethereum network becoming congested by these coins. One notable meme token, Pepe, has contributed significantly to this congestion. BRC-20 tokens, which are an experimental token standard on the Bitcoin blockchain modeled after Ethereum’s ERC-20 tokens, enable developers to create and transmit fungible tokens through the Ordinals protocol. The rise of memecoins has made BRC-20 tokens more popular in the cryptocurrency community.

 

It’s important to note that the number of daily transactions on the Bitcoin network hit a new record of 682,000 recently, up from 250,000 daily transactions at the beginning of 2023. As a result, all BRC-20 transactions must take place on-chain, which has rapidly filled up the limited space in Bitcoin blocks. Due to memecoins and BRC-20s, Bitcoin and Ethereum fees have soared.

 

What to look out for on BRC-20

 

The surge in memecoins’ popularity on BRC-20 can be attributed to the explosive growth of the BRC-20 token standard and the congestion on the Ethereum network caused by memecoins. This is like teaser marketing in my point of view.

 

One of the primary use cases for BRC-20 tokens is in the area of decentralized finance (DeFi). BRC-20 tokens have found utility in decentralized finance applications like lending, borrowing, and yield farming. Unlike rigid Bitcoin, BRC-20 tokens are more flexible and can be used in various decentralized financial applications.

Another use case for BRC-20 tokens is peer-to-peer transfers. BRC-20 tokens utilize the Bitcoin network and can be moved between wallets on the network. The most basic thing one could do with a BRC-20 token is to transfer it to their peers as a representation of value. In the future, I would foresee that the demand for real asset tokenization on BRC-20 will continue to grow.

The development of BRC-20 tokens is continuing at a rapid pace, and it is likely that more use cases will emerge in the future. The impact of BRC-20 tokens has been significant, considering they began as an experiment. The tokens have exploded in popularity in the crypto community, and over 14,000 BRC-20 tokens are deployed on Bitcoin compared to an estimated 400 million on Ethereum. This means that there is still lots of room for growth.

 

Source: https://intpolicydigest.org/what-investors-need-to-know-about-brc-20-tokens/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

TMRW Conference Dubai: NFT in 2023 should be about utility and not (only) collectability

TMRW Conference Dubai: NFT in 2023 should be about utility and not (only) collectability

NFTs or non-fungible tokens have been creating a buzz in the crypto world lately. The world of NFTs is constantly evolving, and many are wondering what the future holds for them. Should they be about collectibility, utility, or both? This was the topic of discussion in a recent panel that featured some well-known faces in the NFT space.

The panel, moderated by Jenny Zheng, brought together experts who shared their experiences and insights on the future of NFTs. The panelists included DaVinci Jeremy. DaVinci Jeremy stressing that people needed to understand the underlying technology before investing in it.

Anndy Lian recalled how he had predicted that NFTs would become the next big thing in August 2020 when the market was valued at a quarter of a million dollars in volume per day. He believes that NFTs are not just a way to purchase art or collectibles but also a way to connect with communities and make them feel like they are part of the artwork.

Stephanie Bretonniere believes that NFTs hold the key to bringing more impact to organizations. She thinks that there are different use cases for NFTs, and the ones that bring utility are the most interesting. She believes that NFTs can be used to break down silos in organizations and create more efficiencies.

Mate Tokay shared their experience, stating that they used to work for a private NFT marketplace, but now work for Web 3, which is similar. They mentioned that when NFTs first started, they were mostly about collectibles such as PFPs (profile pictures) and art, but now we are seeing more NFTs with utilities.

NFTs will likely experience a transformation in focus from solely collectability to utility. Although NFTs have recently become popular as a means of owning unique digital assets, their potential applications extend far beyond collecting and trading.

The advent of NFTs has the power to spark a paradigm shift across numerous industries by enabling validation of ownership, genuineness, and exclusivity for digital assets. Take the gaming industry, for instance. NFTs can be utilized to represent in-game assets, including weapons, skins, and characters, providing a new level of authenticity and scarcity.

In addition, the art industry can leverage NFTs to authenticate the ownership of digital artwork, ensuring its originality and uniqueness. Beyond these applications, NFTs can be employed for digital identity verification, allowing individuals to establish their identity and ownership of personal data without relying on centralized authorities.

NFTs also have the potential to revolutionize digital contracts by providing secure and immutable records of agreements. These novel use cases of NFTs can create new business models and generate fresh opportunities across multiple sectors.

By shifting the focus to utility, the complete potential of NFTs can be realized beyond their current use as collectible digital assets. The implications of NFTs extend far beyond the hype and hold the key to unlocking new possibilities in the digital landscape.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

NFTs (Non-Fungible Tokens) are unique digital assets that use blockchain technology to prove their ownership and authenticity. NFTs can represent a wide range of digital content such as images, videos, audio files, virtual real estate, and more. They cannot be duplicated or divided, as each NFT is unique and represents a one-of-a-kind item.

The metaverse refers to a virtual universe or a collective space where users can interact with each other and with virtual objects, often in the form of computer-generated graphics and simulations. The metaverse is often seen as a decentralized and immersive alternative to the traditional internet, and NFTs play a crucial role in representing and transferring ownership of virtual assets within it.

Web3 refers to the next generation of the internet, where users have more control over their data and online identity. Web3 technologies, such as blockchain, aim to create a more decentralized, secure, and user-centric internet, where users can interact and transact without intermediaries. The metaverse is often seen as a crucial component of the web3 vision, as it provides a space for users to interact and transact using Web3 technologies.

I have mentioned the following during the event:

In 2023, there are several financial trends and challenges that people should pay attention to:

Interest rates: Interest rates are likely to remain low, which could have an impact on investments and the housing market. Defi could come back in the later part of the year as a form of hedge to the high interest rate.

Inflation: With the ongoing global economic recovery and increasing demand for goods and services, there is the potential for inflation to rise, which could affect the purchasing power of consumers.

Digital currencies: Digital currencies, such as Bitcoin and Ethereum, are likely to continue to gain popularity, and they may pose both risks and opportunities for investors. It’s important to understand the technology and the market before investing thoroughly. On the one hand, cryptocurrencies are often seen as a hedge against inflation, as they are decentralized and not controlled by a central authority. In times of high inflation, some investors may see cryptocurrencies as a safe haven for their wealth, which can drive up demand and increase the value of cryptocurrencies.

Environmental, Social, and Governance (ESG) Investing: ESG investing is becoming increasingly popular as people become more conscious of the impact their investments are having on the environment and society. This trend is likely to continue in 2023, and there will be opportunities for investors to put their money into companies that align with their values. We may see “green bitcoins” as a popular thing, or crypto with renewable/ alternative properties would be popular.

Emerging markets: Emerging markets eg Kenya, for example. are likely to present significant investment opportunities in 2023, particularly in areas such as technology, infrastructure, and consumer goods. I see gaming and the metaverse a big thing in emerging markets.

It’s important to keep in mind that these trends and challenges are subject to change based on global economic and political events, and it’s essential to consult with a financial advisor and thoroughly conduct research before making any investment decisions.

More insights can be found on the recording.

 

This event was organise on 4th Feb. 2023 21:00pm SGT (17:00pm Dubai Local Time)

Hosted by:

Tomorrow Conference (https://twitter.com/tmrwconf) and
Blockcast.cc (https://twitter.com/Blockcastcc)

Co-Host:

Bybit NFT (https://twitter.com/Bybit_NFT)
Bybit Web 3(https://twitter.com/Bybit_Web3)
Bybit MENA (https://twitter.com/BybitArabic)

Moderator:
Scott Tripp, Marketing Lead of Blockcast.cc

Guests:

Sam Aly, Country manager of Bybit MENA Region
Zoran Tadic, Program director of TMRW Conference
Martina Andjelkovic, Head of marketing of TMRW Conference
Jenny Zheng, BD Lead of Bybit web3
Dr. Ran, ETHF Core Member
Anndy Lian, Book Author of NFT: From Zero to Hero

 

 

To conclude, NFTs, metaverse, and web3 are interconnected concepts that together represent a vision for a decentralized, immersive, and user-centric digital world where ownership, authenticity, and interaction can be managed in new ways.

Listen to the event on Spotify: https://open.spotify.com/episode/7IeL6eHqNaruFjD1RPbUlJ

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j