The current crypto ecosystem is bustling with numerous innovations that are perceived to be game-changing. While we never know which innovation will redefine the crypto space forever, we should appreciate what each advancement has offered us, and how these could offer tangible benefits to people. We are speaking about the multiple fungible token standards that have evolved within months and are already competing with each other. Our attention in this edition of Blockchain App Factory’s blog will be on three such competitive token standards – BRC-20, DRC-20, and SRC-20. We will see them briefly and draw out parallels that could make them a market trendsetters.
The BRC-20 token standard stands for Bitcoin Request for Comment, created by a pseudonymous Bitcoin core developer. It draws inspiration from the Ethereum-based ERC-20 standard that allows fungible tokens (apart from ETH) to be created on the network. BRC-20 tokens, similarly, allow the creation of fungible tokens on the Bitcoin blockchain.
Since their inception in March 2023, their popularity has reached skyrocketing levels, driven by numerous meme coins that comprise most of the 24,000 tokens that exist. Technologically, these tokens are text files inscribed onto individual Satoshis using the Ordinals protocol, which, in turn, was a result of the Taproot upgrade.
Popular BRC-20 tokens: Meme, Ordi, Vmpx, and Piza.
The DRC-20 token standard allows people to create fungible tokens on the Dogecoin blockchain. As another standard inspired by the ERC-20 standard, it propelled to popularity in recent times, owing to the global DOGE community’s appreciation toward these tokens. These tokens aim to expand the usage of decentralized finance (DeFi) applications.
The reason DRC-20 tokens have attracted professional crypto traders and experimental crypto enthusiasts is that minting these tokens is cheaper (in the order of 0.1 DOGE per mint), while the process itself is achieved at lightning speeds. Also, with Dogecoin having the attention of millennials and Gen-Zs (largely due to celebrity recognitions), the standard is set to progress more to create tangible use cases.
Popular DRC-20 Tokens: Cheems, Dogewow, and Dordi.
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SRC-20 tokens or Bitcoin stamps work similarly to the Ethereum-based ERC-1155 standard that allows the creation of tokens that store multiple items on the Bitcoin network. These tokens are created using the STAMPS (Secure Tradeable Art Maintained Securely) protocol which uses a different way to add data to the Bitcoin network.
The latest entrant to the Bitcoin network comes with far more security when it comes to immutability, as tokens are stored on spendable data transactions. In contrast, Ordinals are stored in witness data, offering the network’s developer the ability to remove the data. One must also note that images backed by SRC-20 tokens should be of smaller sizes (less than 6 kilobytes) compared to ordinals (maximum 4 megabytes).
Comparing BRC-20, DRC-20, and SRC-20 Tokens
As we have introduced you to BRC-20, DRC-20, and SRC-20 tokens, it is time to draw parallels between them. There are several factors based on which we can mark differences, and the below points will give you in-depth insights:
- Blockchain: Both BRC-20 and SRC-20 are based on the Bitcoin blockchain, while DRC-20 works on the Dogecoin blockchain. Also, we should note that while BRC-20 tokens are created using the Ordinals protocol, SRC-20 tokens are created using the STAMPS protocol.
- Token Type: Both BRC-20 and DRC-20 standards strive to bring non-network native tokens into their respective ecosystems. In contrast, the SRC-20 standard sets itself to support the on-chain storage of digital assets like images.
- Minting Fees: The cost to create BRC-20 and SRC-20 tokens is comparatively higher than DRC-20. The former two have a higher minting cost as they are based on the Bitcoin blockchain, the crypto space’s most-wanted network. With the Dogecoin community being not as big as Bitcoin’s, lesser transactions occur, hence DRC-20 tokens have lower minting fees.
Hence, we have seen the differences between BRC-20, DRC-20, and SRC-20 token standards. While the world is still thinking about where they could make a difference, new use cases are regularly proposed by enthusiastic developers. These tokens are projected to gain prominence across PFP communities, decentralized finance applications, and gaming platforms. At Blockchain App Factory, we aim to keep tabs on the latest trends and adopt our services accordingly to serve clients better. This time around, our developers have noted the game-changing potential of BRC-20, DRC-20, and SRC-20 token standards, and are preparing themselves to include these in our projects when the need arises.
Do you want to know how you can integrate such game-changing tokens into your crypto business? Fill out the form below to schedule a meeting with our professionals today to discuss the possibility.