BRC

Bitcoin Request for Comments (BRC) is a framework for establishing standardized protocols on the Bitcoin blockchain. These proposals allow developers to create and deploy various functionalities and asset types on the Bitcoin network without modifying Bitcoin's core protocol. The most famous among these is the BRC-20 standard, which enables the creation of fungible tokens on the Bitcoin blockchain through the Bitcoin Ordinals protocol, bringing new use cases to the Bitcoin ecosystem.

The concept of Bitcoin Request for Comments originated from Ethereum's ERC (Ethereum Request for Comments) standards. With the emergence of Bitcoin Ordinals theory, developers began exploring how to implement Ethereum-like functionalities on Bitcoin. In March 2023, developer Domo created the BRC-20 standard as the first token standard based on Ordinals theory. This innovation enabled the Bitcoin blockchain to support token creation, transfers, and trading functionalities that were previously only possible on smart contract platforms like Ethereum.

The working mechanism of Bitcoin Request for Comments is based on the Bitcoin Ordinals protocol and Inscriptions technology. The Ordinals protocol assigns a unique sequence number to each satoshi (the smallest unit of Bitcoin), while Inscriptions technology allows data to be written directly into the witness data of Bitcoin transactions. When developers want to create tokens under BRC standards, they write the token metadata (such as name, total supply, minting rules) into the Bitcoin blockchain through inscriptions. Using BRC-20 as an example, operations include deploy (deploying a token contract), mint (creating tokens), and transfer (moving tokens). These operations are executed through JSON-formatted inscription data and are permanently recorded on the Bitcoin blockchain.

Despite bringing new functionalities to Bitcoin, BRC standards face a series of risks and challenges. First, since the Bitcoin blockchain was not designed to handle large volumes of small transactions, widespread use of BRC tokens could lead to network congestion and increased transaction fees. Second, compared to Ethereum's smart contracts, BRC standards remain limited in functionality and cannot implement complex logic and applications. Additionally, there are security and compliance issues with BRC tokens, exposing users to potential fraud risks, while regulatory bodies may take measures against these new types of assets. Finally, BRC standards are still in their early stages, and the protocols may evolve over time, creating uncertainty for developers and users.

Bitcoin Request for Comments represents an attempt to expand the Bitcoin ecosystem toward broader functionality. By building new protocol layers on existing infrastructure, BRC standards allow Bitcoin to be not just a store of value and payment method but also support more diverse applications. Although these innovations still face technical and regulatory challenges, they provide new possibilities for Bitcoin's long-term development and may attract more developers and users to the Bitcoin ecosystem. As technology matures and the community develops, BRC standards could become an important path for expanding Bitcoin's functionality, bringing new vitality to the oldest cryptocurrency.