Bitcoin can issue tokens now? What exactly have ORDI and BRC-20 changed?

The biggest event in the Bitcoin world last year was the Ordinals protocol, which enabled BTC to issue tokens like Ethereum. ORDI, as the first BRC-20 standard token, exploded in popularity as soon as it launched—its market cap skyrocketed from zero to $1.4 billion at an astonishing speed.

The Core Differences

Simply put, BRC-20 and ERC-20 have similar concepts, but their implementations are completely different:

ERC-20 (Ethereum): Relies on smart contracts, is highly functional, and supports complex DApps

BRC-20 (Bitcoin): Directly inscribes data on satoshis (the smallest unit of BTC), without using smart contracts

That sounds impressive, but it comes with major issues: the Bitcoin network was never designed for this. Ordinals inscribe data, which is essentially piling up “junk” on the blockchain, leading to network congestion and soaring transaction fees. Even Bitcoin core developer Luke Dashjr criticized it as “network spam.”

Market Status

As of the end of 2023, the total market cap of BRC-20 tokens exceeded $1.4 billion, and they have already found use in gaming, NFTs, digital collectibles, and more. But it’s hard to say how much of this is real demand and how much is pure speculation.

What to Watch for in the Future

The most imaginative prospect is cross-chain compatibility—if BRC-20 can connect with Ethereum and other public chains, its use cases could explode. Additionally, the Taproot upgrade opens up more technical possibilities for Bitcoin.

But the reality remains: Bitcoin was originally designed as a “simple and reliable payment tool,” and forcing new features always comes at a cost. How far ORDI and BRC-20 can go depends on whether this ecosystem can balance innovation with stability.

Do your own research—it’s important to question what others say.