Recently, a new open standard known as ORC-20 has been introduced to enhance the features of the popular BRC-20 token standard on the Bitcoin network. ORC-20 aims to improve adaptability, scalability, and security while eliminating the risk of double spending.
However, critics argue that the new protocol’s complexity and centralization have raised concerns. It offers no significant advantage over the existing ERC20 standard, leading some to dismiss it as a mere meme coin hype.
The concept of ordinals and the BRC-20 token standard, initially introduced by Rodarmor and Domo, respectively, form the foundation for this new development. Ordinals are digital artifacts capable of carrying various data types on the Bitcoin network.
The ORC-20 protocol is designed to facilitate the wider adoption of ordinals. It enables the deployment of new ORC-20 tokens or migrating existing BRC-20 tokens through specific events such as deploy, mint, send, cancel, and upgrade.
Importantly, any ordinal fungible tokens conforming to the ORC-20 standard can be considered ORC-20 tokens.
The limitations of the current BRC-20 standard, including immutable supply and maximum mint values after initial deployment, restricted naming space to four digits, and heavy reliance on external centralized indexers for inscribe transfers and bookkeeping, have prompted the need for improvements.
To address these limitations, the proposed ORC-20 protocol introduces several enhancements. It allows for the use of ticker symbols without size constraints, supports a wider range of data formats in a JSON structure, and enables secure transactions by adopting the UTXO model.
Additionally, send transactions can transfer amounts to multiple receivers, and partial transactions can be canceled using nonces.
Improved Features: ORC-20 Vs. BRC-20 For Bitcoin Network
Moreover, the ORC-20 protocol facilitates the migration of existing BRC-20 tokens through the use of a wrapper ordinal. This special type of ordinal allows for the conversion of tokens from BRC-20 to ORC-20, with the migration process exclusively accessible to the deployer of the BRC-20 tokens.
It is important to note that ORC-20 is an experimental project, and the value or utility of tokens created using this standard is not guaranteed. Users are advised to exercise caution and conduct thorough research before utilizing ORC-20.
While ORC-20 brings potential advancements to the Bitcoin network’s token standards, its complexities and perceived lack of advantages over existing standards have generated criticism.
However, the future adoption and success of ORC-20 will depend on the community’s response and its ability to address these concerns effectively.
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