ORC-20 Token
An ORC-20 token is a fungible token standard built on the Bitcoin network using the Ordinals protocol, designed to improve upon the earlier BRC-20 standard.
How ORC-20 Tokens Work
While Bitcoin wasn’t originally created for smart contracts or tokenization, the Ordinals protocol allows users to “inscribe” data onto individual satoshis. ORC-20 uses this system to define token supply, transfers, and other functions, offering more flexibility and clearer rules than BRC-20. It also introduces improvements like enhanced validation and optional metadata for better indexing.
Why ORC-20 Tokens Matter
ORC-20 expands what’s possible on Bitcoin without altering its core protocol. It brings fungible tokens to the Bitcoin ecosystem in a more efficient and developer-friendly way. As experimentation grows, ORC-20 could open doors to DeFi, collectibles, and broader utility on the Bitcoin chain.