What it is
BRC-20 is an experimental token standard that enables the creation and transfer of fungible tokens on the Bitcoin blockchain, similar to Ethereum's ERC-20 standard. It operates by utilizing the Ordinals protocol to inscribe JSON (JavaScript Object Notation) data onto individual satoshis. This JSON data defines the token's parameters, such as its name, symbol, and supply, allowing for the deployment, minting, and transfer of these tokens within the Bitcoin ecosystem.
BRC-20 tokens have frequently been in the news since their emergence in early 2023, particularly concerning their impact on Bitcoin network activity and transaction fees. Stories often highlight the speculative trading of these tokens and their contribution to increased block space demand. Readers following these developments need to understand that BRC-20 tokens are a novel, experimental use of Bitcoin's blockchain, which can lead to network congestion and higher costs for standard Bitcoin transactions.
Why it matters
BRC-20 tokens represent a new, experimental class of assets on the Bitcoin network. They can drive network activity and impact transaction fees, affecting your Bitcoin usage.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice