BRC-20 Token: A Practical Guide to Bitcoin’s New Token Standard

When working with BRC-20 token, a Bitcoin‑native token format that uses ordinal inscriptions to create fungible assets directly on the Bitcoin blockchain. Also known as ordinal token, it lets developers launch tokens without needing smart contracts, opening fresh DeFi use cases on Bitcoin.

The heart of the system is Ordinal inscriptions, a technique for attaching arbitrary data to individual satoshis, which BRC-20 tokens use to store balance and transfer information. Because each inscription lives on the Bitcoin blockchain, the token inherits Bitcoin’s security guarantees and network effects. In simple terms, BRC-20 token encompasses ordinal inscriptions and requires the Bitcoin blockchain for settlement. This relationship drives the token’s scarcity model and influences its Tokenomics, the set of rules that define supply limits, minting schedules, and distribution mechanisms.

Why It Matters for Traders and Developers

Tokenomics matters because it shapes how a crypto airdrop can be executed with BRC-20 tokens. Projects often drop large batches of newly minted tokens to early adopters, using the ordinal inscription format to keep distribution on‑chain and transparent. Crypto airdrop leverages BRC-20 token to reach wallets that already hold Bitcoin, creating an instant user base without extra onboarding steps. At the same time, developers must consider the limited transaction throughput of Bitcoin, so they design lightweight transfer scripts that fit within the standard transaction size limits.

Another key angle is the interoperability with existing ecosystems. While BRC-20 lives on Bitcoin, many DeFi platforms on other chains are building bridges that wrap these tokens into ERC‑20 equivalents, allowing liquidity to flow across ecosystems. This bridge concept shows that BRC-20 token relates to cross‑chain solutions, expanding its reach beyond pure Bitcoin holders.

Below you’ll find a hand‑picked collection of articles that dive deeper into these topics. From exchange reviews that handle BRC‑20 trading pairs to detailed tokenomics breakdowns and airdrop guides, the posts give you actionable insights and real‑world examples. Keep reading to see how the standard is being used today and what you can do with it tomorrow.