What are BRC20 tokens? How to mint BRC20 Tokens?

InBlockchain Education, Crypto Education, Featured, Investing

After the recent rise of the Pepe (PEPE) meme coin, Bitcoin’s BRC-20 token standard has become the latest fad in the crypto ecosystem. The BRC-20 standard has been used to create 8,500 tokens, most of which are meme coins such as PEPE and Memetic (MEME). With all this hype in the crypto industry, let’s explore more about what are these BRC20 tokens and how you can mint them.

What are BRC20 tokens?

The BRC-20 “token standard” is a test fungible token developed with Ordinals and Inscriptions and saved on the Bitcoin base chain. It deploys token contracts, mints tokens, and transfers tokens using Ordinal inscriptions of JSON data.

This is not a token standard in the sense that EVM chains create smart contracts that manage the token standard and its various rules, but rather a method of storing a script file in Bitcoin and using that file to attribute tokens to satoshis and then allowing them to move from one user to another.

On March 8th, 2023, Twitter user @domodata developed the BRC-20 token. The name is a play on Ethereum’s ERC-20 token standard, however, they do not interact with smart contracts like the EVM standard from which it derives its name.

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There are numerous methods for creating tokens on other chains, each of which has its own market and exchange with liquidity where they can be exchanged. The token market is a breeding ground for speculation and scams, and hearing this ERC-20 word may attract these consumers, who may then relocate to Bitcoin.

While this may increase demand for Bitcoin to pay fees and take up block space, it may also entice naive investors to purchase meaningless metadata that only a few wallets manage to transform into something worth displaying in a human-readable manner.

After understanding a brief of the BRC-20 tokens, let’s understand why they are hyped.

Why are BRC-20 tokens so hyped?

The original BRC-20 token contract for the “ordi” token has a hard cap of 1,000 tokens each mint and a total maximum supply of 21 million tokens. Since then, the market value of BRC-20 tokens has risen over the previous month, reaching an astounding $120 million, signifying a 600% increase in the last week alone. On May 1, BRC-20 tokens had a volume of 366,000 transactions, while the total number of transactions on the network was 2.36 million. As the demand for BRC-20 tokens continues to climb, so are transaction costs as a result of the increased token activity. With the increased hype of the BRC-20 tokens, the BTC chain is congested.

Now that you know why BRC-20 tokens have been hyped, let’s explore how you can mint BRC20 tokens.

How to mint BRC20 tokens?

Bitcoin Tokens (BRC-20) are blockchain-based digital assets that are frequently used for decentralized finance, gaming, and digital collectibles. Unisat.io is a platform that enables users to easily generate, manage, and trade these tokens. We will lead you through the process of minting Bitcoin Tokens (BRC20) on Unisat.io in this comprehensive guide.

Step 1: Create a Wallet

You must first create a suitable wallet before you can begin minting tokens. Unisat is a well-known web-based wallet that accepts custom BRC20 tokens.

Step 2: Integrate BRC20 Support into Your Wallet

After you’ve created your wallet, you’ll need to add BRC20 token support. Take the following steps:

Choose the option to add custom tokens or assets to your wallet.
Add the BRC20 token standard’s contract address. You can find it on the Unisat.io website or in the token’s documentation.
Input the token’s symbol and decimals that can be found in the documentation.

Step 3: Get Some Bitcoin (BTC)

You will need both Bitcoin (BTC) to mint BRC-20 tokens. Here’s how to get them:

Buy Bitcoin from any reputed exchange like Binance, Coinbbase, Kucoin, etc.
Buy Bitcoin from P2P
Borrow some BTC from your friend (Need really good friends for this)

Step 4: Add Bitcoin to Your Wallet

Now that you have the necessary cryptocurrency, deposit them into your wallet by completing these steps:

Find your Bitcoin Taproot (BTC) addresses in your wallet. Make sure it is a Taproot address.
Navigate to the withdrawal area on the exchange and enter your wallet addresses.
Confirm the transaction and wait for the funds to appear in your wallet.

Step 5: Register Your Wallet with Unisat.io

Follow these steps to connect your wallet to Unisat.io:

Visit the website Unisat.io.
Select the “Connect Wallet” option.
Select your wallet from the list of available alternatives and follow the on-screen instructions to connect.

Step 6: Mint Tokens

Now that your wallet is connected, you may begin minting BRC20 tokens. Take the following steps:

Navigate to the “Mint Tokens” area of Unisat.io.
Enter the desired token information, such as the name, symbol, and total supply.
Choose the functionality of the token, such as whether it should be transferable or have a fixed supply.
Click “Mint Tokens” to validate the transaction in your wallet.

Step 7: Organise and Trade Your BRC-20 Tokens

Manage and trade tokens on Unisat.io using the following steps:

Go to Unisat.io’s “My Tokens” area.
View and control your tokens, such as changing the supply of the token or adding new functionality.
To trade your tokens, go to the “Marketplace” section and make a new trading pair with the cryptocurrency of your choice. You need 20 UniSat points to trade on Marketplace. Please note that for each use of UniSat Inscribe to create an inscription (including TRANSFER minting in UniSat Wallet), the UniSat Points of your connected address will be incremented by one.
Set the price as well as other trading characteristics such as order type and quantity.

Step 8: Market Your BRC-20 Tokens

Consider advertising your BRC-20 tokens using the following avenues to boost their value and awareness:

Social networking sites: To reach a larger audience, share your token’s information and updates on platforms including Twitter, Facebook, and Reddit.
To attract potential investors and users, participate in conversations on major cryptocurrency forums such as Bitcointalk and CryptoCompare.
Press Statements: To announce noteworthy milestones or partnerships, publish press releases on recognized Bitcoin news sources.

Step 9: Incorporate Your BRC-20 Tokens into Decentralised Applications (dApps).

Consider incorporating your BRC-20 tokens into blockchain-based decentralized applications (dApps) to boost their usage and value:

Finance Decentralised (DeFi): Allow your tokens to be used as collateral, staked for rewards, lent, and borrowed on DeFi platforms such as Uniswap, Aave, and Compound.

Non-fungible Tokens (NFTs): Use your BRC-20 tokens as the underlying value to create digital collectibles, virtual goods, or in-game assets.

DAOs: Use your tokens to enable governance and voting within decentralized organizations or communities.

Step 10: Tracking the Performance of Your BRC-20 Tokens

Consider using the following tools and resources to monitor the success of your BRC-20 tokens and make educated decisions:

https://brc-20.io: Monitor the market value, trading volume, and market cap of your tokens on prominent cryptocurrency data aggregators on BRC-20.
Ordspace.org: Examine your token’s on-chain activity, such as transactions, holders, and token transfers.
Dune Analytics: Create custom dashboards to visualize and analyze your token’s statistics and trends.

Bottom Line

Minting BRC-20 tokens on Unisat.io is a simple operation that can provide your digital assets with multiple potentials. You can easily create, manage, and trade BRC-20 tokens by following this step-by-step guide. To maximize their potential and worth, remember to market your tokens, incorporate them into dApps, and track their success.