The birth of BRC-20, the arrival of new hotspots

Since May, the BRC-20 concept token based on the Ordinals protocol has grown wildly amidst the high attention of market users and expanded rapidly. It has formed a huge wealth-creating effect in a very short period of time.

BRC-20 is a token standard created in March 2023 by anonymous user "Domo" (Twitter account @domodata). Compared to the non-fungible nature of Ordinals, BRC-20 tokens are fully fungible. This makes BRC-20 tokens more usable.

Based on the BRC-20 standard, users can create and mint Bitcoin-based tokens through the Ordinals protocol, a process similar to how Ethereum users can create and mint tokens using the ERC-20 standard.

Recently, BRC-20 concept tokens have also gradually taken over the popularity of PEPE, and they have all achieved varying degrees of rise, which has also led to a strong speculative value and wealth effect. In addition to the ordi tokens originally issued based on Ordinals, the most popular BRC-20 tokens in the market are mainly MEME concept tokens such as pepe, punk, and meme.

According to brc-20.io data, the total market value of BRC-20 Token has exceeded the 1 billion USD mark, and the current total market value is 1,021,933,627 USD. At the same time, there are more than 14,000 BRC-20 tokens in the current market.

There is no doubt that BRC-20 tokens have become a hot spot in the cryptocurrency market recently, and it can even be said that they have almost entered the mode of currency issuance for all. Driven by market enthusiasm and wealth creation effect, this track may usher in huge growth and potential.

Strengths and Dangers

In essence, the main advantage of BRC-20 tokens is that it has brought market enthusiasm with a new paradigm, and this round of "inscription" effect has also injected new vitality into the development of the Bitcoin network. It prompted some new stakeholders with different voices and viewpoints to join the BTC ecosystem, and finally injected new funds and market discussions into the ecosystem.

In addition, due to the surge in BTC network transactions, the transaction fees paid to miners are also increasing, and the rise in miner fees will eventually stimulate miners' enthusiasm and enhance the security of the BTC network.

Of course, this also means that inscriptions and innovations based on the BTC network will increase the long-term sustainability of Bitcoin. It might even catalyze a cultural shift within the Bitcoin community.

But returning to reality, it is undeniable that the Ordinals ecology is still in its infancy. For players, this ecology still has unlimited imagination. Some communities even believe that the current stage of Ordinals is similar to the NFT period in 21 years. As the exchange medium of network core flow, BTC, with the increase of tokens and "inscription" products in this ecology, users and investors will also flock in, and may even become the next emerging track to take off.

However, although the explosion of BRC-20 tokens has driven the activity and emerging value of the BTC network, new problems have also followed.

With more and more types of tokens and users in the BTC ecosystem, problems such as long block generation time on the Bitcoin network, high miner fees, and network congestion are gradually exposed. The level of congestion on its network even forced Binance to stop BTC withdrawals twice.

Therefore, the BRC-20 token trading market will inevitably spawn a large number of on-chain trading products, that is, Ordinal-based Swap applications.

BISOswap: Uniswap on the BTC chain

According to CoinTime, BISOswap announced the deployment of the first DEX using the AMM mechanism on the BRC20 protocol. Users can add LPs to obtain liquidity and fee incentives. Provide low-gas, more diversified and convenient BTC asset transaction services.

Bisoswap is the first Swap protocol developed based on the Ordinal protocol to provide liquidity for the BRC-20 ecosystem. Bisoswap improves the liquidity of BRC-20, provides LP trading liquidity pool and real-time trading for the entire BRC-20 token trading market, and will solve the complex problem of BRC token trading at the same time, making it easier for users to buy and sell and Add a liquidity pool.

In addition, the Bisoswap protocol will also try to bring the BTC network into the LP mode for the first time, which will not only bring users a richer trading experience, but also help users realize the diversified use of BRC-20 assets.

The original intention of Bisoswap was to improve the liquidity of the ever-growing BRC-20 tokens. Of course, this is also an urgent problem to be solved in the process of BRC-20 ecological development.

As we all know, one of the core charms of the BRC-20 concept token lies in: "tokens are launched completely and fairly, without dealers."

Therefore, in the long run, what the BRC-20 concept token needs is not a large number of decentralized exchanges, but a more convenient way to trade on the chain.

In short, the BRC-20 ecology has begun to generate a large amount of Swap demand. In the future, with the blowout of BRC-20 concept tokens, users' demand for Swap in the BRC-20 ecological layer will also show explosive growth.

As a pioneering product on this track, Bisoswap will also have the opportunity to gain a strong influx of traffic and room for development in the future. When the BRC-20 track begins to grow explosively, Bisoswap may become the next Uniswap.