NFT Marketplace Magic Eden has recently announced the temporary suspension of BRC-20 asset transactions until they achieve Ordinance Consensus across all these assets. However, other forms of trading continue as usual.
The BRC-20 (Bitcoin Request for Comment 20), introduced on 03/09/2023, is a token created and stored on the Bitcoin blockchain using the Inscription mechanism and Ordinals protocol. Once minted, users can only transfer this token between different wallets. Compared to the ERC-20 standard, BRC-20 has limitations, such as the inability to interact with smart contracts and other limited functionalities.
Despite these limitations, BRC-20 has become a sensation in the world of digital collectibles. The increasing demand from investors for BRC-20 assets is the reason Magic Eden added BRC-20 to its list of tradable assets. In the initial weeks, BRC-20 significantly impacted the trading volume of leading cryptocurrencies, sparking excitement among investors. However, as the initial FOMO (Fear of Missing Out) phase passed, things began to settle down, and BRC-20 lost some of its initial prominence.
While BRC-20’s prospects for wider adoption may be fading, many still believe it represents a platform for future development in terms of Bitcoin’s utility.