Original editor: Biteye core contributor Crush
Original editor: Biteye core contributor Crush
With the listing of $Ordi on Gate.io, Binance’s NFT market official announced support for Ordinals transactions, OKX Web3 wallet announced support for BRC 20, and BRC 20 tokens have temporarily reached the peak of market sentiment.
At the same time, due to the limited naming of BRC 20 tokens, constant double-spend attacks, simple token functions and difficult ecological development, etc., the ORC 20 token standard came into being.
The standard has only been launched for half a month, and the minting volume has exceeded 250,000. Considering the wealth creation effect of BRC 20 and the huge potential of the Bitcoin ecosystem, the new token standard naturally attracts attention.
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1. Ordinal token new standard, ORC 20 launched
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https://dune.com/ordinalstats/orc-20
BRC-20 (brc 20 Ordinals) (dune.com)
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2. Restrictions of BRC 20
1. After the first deployment of BRC 20 tokens, the token supply and maximum minted amount cannot be changed, which limits the development of tokens.
2. BRC 20 token naming is limited to 4 digits.
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3. Differences between ORC 20 and BRC 20
The same thing between ORC 20 and BRC 20 is that they both implement a token deployment standard similar to Ethereum ERC 20 based on the Ordinal protocol in the Bitcoin ecosystem;
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1. Reduce the risk of double spending of BRC 20 through UTXO
In each transaction, the sender specifies the amount the recipient receives and the remaining balance to send to the sender. Any send transaction that does not send all remaining balance is not a valid transaction.
Send transactions can transfer amounts to multiple recipients, and each send transaction (except self-transactions) must explicitly specify the amount to send.
The transaction is not complete until the remaining balance is sent back to the sender.
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2. The token name is not limited to 4 characters and is not case sensitive
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3. Added the function of customizing some keys to achieve more advanced functions
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4. Tokens can be upgraded, such as changing the max and limit of token supply
This flexibility in token supply ensures that projects can use ORC 20 to create more use cases, such as:
Gradually reduce the number of mints to increase the scarcity of tokens, such as simulating Bitcoin halving.
Increases the maximum supply and rewards community members with additional incentives.
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4. Advantages of ORC 20
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The first is to reduce the risk of double spending through the UTXO mechanism
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The second is to make tokens more customized
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The third is upgradeable tokens
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The fourth is to support the upgrade of BRC 20 inscriptions to ORC 20 inscriptions
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5. Disadvantages of ORC 20
If the popularity of BRC 20 is partly due to its minimalist design that is easy to spread in the community, then the complex design of ORC 20 may bring complaints from many users.
For example, the project party can customize and add certain keys, which will make operations such as token casting and transfer more complicated, and users are prone to mistakes.
However, the feature that can be upgraded, that is, the number limit can be changed after the issuance of tokens, is to some extent the biggest disadvantage of ORC 20.
On the one hand, it may make users feel that it has violated the spirit of the Immutable blockchain, and worry that there will be problems such as malicious additional issuance by the project party, rat warehouses, and running away;
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6. Will ORC 20 replace BRC 20?
ORC 20 and BRC 20 have their own advantages and disadvantages, and have their own application scenarios. BRC 20 is simple in design, immutable, and suitable for value storage and exchange.
The design of ORC 20 is complex, rules can be designed and customized, and certain business logic can be realized. For example, BRC 20 is more like Bitcoin, and ORC 20 is more like Ethereum.
And if it is to compete with BRC-20 in the small circle of Ordinals, then the more important point of competition between the two is probably to attract the support of centralized institutions (to provide users with a more liquid trading market, better use of Tools and browsers, etc.), rather than just improving the token minting function, but ORC 20 may be weaker than BRC 20 in terms of winning the support of centralized institutions.
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7. ORC Participation Methods and Tutorials
At present, ORC 20 is in the early stage, only over-the-counter transactions, and the transfer is more complicated. Unlike BRC 20, you must be very cautious when doing over-the-counter transactions;
And mint is relatively simple, you can directly use Unisat's inscribe. Of course, it must be noted that the name of ORC can be repeated and can only be determined according to the ID. At the same time, the deployer can issue additional ones in the future.
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8. Related Websites
4. Dune Kanban
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Nine. Summary
In general, ORC 20 is further innovated on the basis of BRC 20, so that tokens issued based on the Ordinal protocol can have more gameplay and more convenient functions, and at the same time, some custom key functions can obtain continuous income for the project side , which is conducive to extending the life cycle of tokens and stimulating innovation (stimulating user transactions).
But from the user's point of view, the operation of ORC 20 tokens may be more complicated; the risk of the project party running away and smashing the market becomes greater;
If the project party sets a royalty, the user needs to pay an additional fee during the buying and selling process, but for the user, I bought a token and not an NFT, so why do I need to pay a royalty.
In addition, the design of ORC 20 can't help but make people confused. If it's just to achieve more token functions, why not use ERC 20? After all, ERC 20 is more decentralized.
As mentioned by Twitter KOL @xiyu, the purpose of BRC 20 using json is to facilitate retrieval, which will inevitably use centralized services, which is also a natural drawback of other applications except nft in the current Ordinals ecosystem. And ORC 20 is obviously also aware of the disadvantages of using json, but has not made significant improvements.
Of course, it is unfair to directly compare ORC 20, BRC 20 and ERC 20. The first two are attempts to build on Bitcoin, the safest and longest blockchain, and it remains to be seen whether they will be sustainable.
In direct comparison with BRC 20, ORC 20 does not solve the centralization problem existing in BRC 20, and the improvement of token functions may not be the focus of Bitcoin ecology, so it may be difficult to form a competitive advantage over BRC 20, and may become a counter to BRC 20 in the future. Supplement to the BRC 20 standard. At the same time, we should also pay attention to the support and attitude of centralized exchanges for both.
