BRC-20 led to a surge in Gas Fees, and many transactions were put on hold. Due to the huge number of withdrawal transactions and the surge in handling fees, Binance suspended Bitcoin withdrawals twice within a day. On May 8, the Bitcoin network stopped producing blocks for an hour due to congestion, and the gas fee for each transaction on the chain once reached a maximum of $30. What exactly is this Brc-20, which brought down Binance twice by itself? This story has to start from the beginning.
On December 20, 2022, Casey Rodarmor created the new concepts of Bitcoin Ordinals and Inscriptions (ordinals and inscriptions). Ordinals is a way to put NFT on the Bitcoin chain. This agreement caused a sensation and drove the Bitcoin ecosystem Activity rose rapidly. Immediately afterwards, NFT giant YUGA LABS settled in BTC NFT and announced that it would use the Ordianals protocol to release the TwelveFold series of NFTs. Top IRL brands such as Bugatti also decided to issue NFT series through the Ordinals protocol. This news further promoted the popularity of the Bitcoin ecosystem again. grow rapidly.
After BTC NFT received widespread attention, Twitter user @domodata started an experiment on the issuance of homogeneous tokens on BTC based on the Ordinals protocol, called Brc-20 (currently only an experimental fungible token standard, the token itself has no what value). The proposer of the Brc 20 protocol used this protocol to issue the first coin ORDI, with a total of 21 million. The war is imminent, and more and more BRC 20 tokens appear on the chain, such as MEME, PEPE, etc. The wealth creation myth of PEPE coin pushed the market sentiment to the peak. The market sentiment was extremely FoMo, and leeks swarmed up. After a few weeks, the popularity of Brc-20 remained high.
Again, what the encryption market lacks most is not funds, but stories. Whether Brc-20 can grow into a mature narrative is still unknown, but it is undeniable that Brc-20 is indeed a new opportunity for the encryption market. Of course, there are still some problems and challenges in Brc-20, but the development and improvement of technology is never achieved overnight, but a long process, which requires us to explore more application scenarios and solutions. Under the future development trend, it is believed that the Brc-20 protocol and other related technologies will continue to be improved and optimized, injecting new impetus and vitality into the development of the encryption market.
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