The emergence of Bitcoin-based token standards has sparked a new wave of innovation within the blockchain space. Among these, BRC-20 has risen as a pivotal development, enabling the creation of fungible tokens directly on the Bitcoin network through the Ordinals protocol. This article explores the foundational mechanics of BRC-20 and Ordinals, analyzes their impact on Bitcoin’s ecosystem, and delivers an in-depth examination of two leading projects: $ORDI**, the pioneer BRC-20 token, and **$MUBI, a cross-chain bridge enhancing BRC-20 interoperability.
What Is BRC-20?
BRC-20 is often described as Bitcoin’s equivalent to Ethereum’s ERC-20 standard—though with key technical distinctions. Introduced in March 2023 by an anonymous developer known as Domo, BRC-20 leverages the Ordinals protocol to inscribe JSON-formatted data onto individual satoshis (sats), Bitcoin’s smallest unit. These inscriptions define token deployments, mints, and transfers, effectively creating a ledger for fungible tokens on Bitcoin’s base layer.
Unlike traditional smart contract platforms, BRC-20 does not support programmable logic or automated execution. Instead, it relies entirely on manual transaction processing and community-driven validation. As such, BRC-20 remains a proposed standard, not a formalized protocol, and most trading activity occurs on centralized exchanges like Binance, OKX, and Bybit rather than decentralized venues.
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Understanding Ordinals: The Foundation of Bitcoin NFTs
Before diving into BRC-20, it's essential to understand Ordinals, the underlying technology that makes Bitcoin-based tokens possible.
Ordinals assign a unique, immutable identity to each satoshi by inscribing data—such as text, images, or code—into the witness field of a Bitcoin transaction. This process effectively turns otherwise identical sats into distinct digital artifacts, forming what many refer to as Bitcoin NFTs.
Launched in December 2022, the Ordinals protocol has already seen massive adoption. By May 2023, over 7.8 million inscriptions had been recorded, unlocking new use cases for Bitcoin beyond simple value transfer.
A critical advantage of Bitcoin NFTs is their on-chain permanence. Unlike many Ethereum NFTs, which store metadata off-chain via URLs vulnerable to manipulation or removal, Ordinals embed all data directly into the blockchain. Once confirmed, this information cannot be altered—making it a more authentic form of digital ownership.
Projects like Yuga Labs’ Twelvefold and the Bitcoin-native CryptoPunks have demonstrated strong market interest in Bitcoin-based collectibles. Third-party tools such as Ordinals Bot and Gamma further lower entry barriers by allowing users to mint without running full nodes.
Market forecasts suggest the Bitcoin NFT sector could reach $4.5 billion by 2025, driven by growing infrastructure support and increasing institutional interest.
BRC-20: Extending Ordinals to Fungible Tokens
While Ordinals enable NFT creation, BRC-20 extends this capability to fungible tokens. By standardizing the format of inscribed data (using predefined JSON structures), developers can deploy and manage token ecosystems directly on Bitcoin.
$ORDI was the first BRC-20 token launched on March 9, 2023. With a capped supply of 21 million tokens and a maximum mint of 1,000 per transaction, all $ORDI were claimed within 18 hours—generating over 1,458 BTC in miner fees. By May 2023, its market price reached $11.48, reflecting strong early demand.
As of late 2023, more than 18,000 BRC-20 projects existed, with a combined market cap exceeding $400 million. At times, BRC-20 transactions accounted for over 50% of total Bitcoin network activity, underscoring their significant footprint on the blockchain.
How BRC-20 Impacts the Bitcoin Network
The rise of BRC-20 has introduced both opportunities and challenges for Bitcoin:
- Increased Transaction Fees: BRC-20 inscriptions require larger block space due to embedded data. This competition for space drives up fees, benefiting miners.
- Miner Revenue Surge: According to Glassnode, miner revenue from fees peaked at 42.6% of total income during periods of high BRC-20 activity.
- Network Congestion: High transaction volumes have occasionally led to delays. For example, Binance temporarily suspended BTC withdrawals in May 2023 amid a backlog of over 350,000 unconfirmed transactions.
These dynamics highlight a shift in Bitcoin’s usage—from a pure store of value to an active platform for digital asset innovation.
Advantages and Challenges of BRC-20
Why Is BRC-20 Gaining Popularity?
- True Decentralization: Unlike ERC-20 tokens, BRC-20 lacks smart contracts—meaning no team-controlled reserves or vesting schedules. Every participant mints under the same rules.
- Bitcoin-Backed Security: Transactions are secured by Bitcoin’s robust proof-of-work consensus, reducing counterparty risk.
- Speculative Appeal: The novelty of “Bitcoin DeFi” has attracted traders seeking high-beta exposure to Bitcoin’s price movements.
- Low Liquidity = High Volatility: Thin markets amplify price swings, creating opportunities for short-term gains.
- Institutional Interest: Major players like Yuga Labs entering the space lend credibility and drive narrative momentum.
Key Concerns and Limitations
- High Entry Barriers: Running a full node and paying steep gas fees limits retail participation.
- Security Risks: No native AMMs mean reliance on third-party marketplaces, increasing vulnerability to fraud.
- Scalability Issues: Large inscription sizes strain block space; prolonged congestion risks attacks like time-bandit attacks, where miners reorganize blocks for higher fees.
- Regulatory Uncertainty: BRC-20 tokens may face scrutiny as unregistered securities, especially if they exhibit investment-like characteristics.
- Meme Coin Dominance: Many BRC-20 projects lack utility. Only a few—including $ORDI, $MUBI, and $VMPX—have shown lasting relevance.
Despite these concerns, the ecosystem continues to evolve rapidly, with infrastructure improvements paving the way for broader adoption.
Spotlight on $MUBI: Bridging BRC-20 and EVM Chains
What Is Multibit?
Multibit ($MUBI) stands out as the first bidirectional bridge connecting BRC-20 tokens with EVM-compatible chains like Ethereum, BNB Chain, and Polygon. Its core mission is to enhance liquidity and interoperability between Bitcoin’s native token standard and the broader decentralized finance (DeFi) ecosystem.
With a total supply of 903.6 million $MUBI, all tokens were initially minted on Bitcoin as a BRC-20 asset before being bridged to EVM networks for fundraising and liquidity purposes.
Tokenomics and Fundraising
Multibit raised funds through a public launchpad event with an initial FDV of $400,000. The token distribution was structured as follows:
- KOL Whitelist Sale: 11.25%
- Public Sale: 78.75%
- DEX Liquidity (locked indefinitely): 5%
- Team (6-month lock + 2-year vesting): 5%
The sale price was $0.000506 per MUBI**, resulting in total proceeds of $196,075—an early return potential of 135x** for initial investors.
Liquidity and Exchange Listings
$MUBI is actively traded across multiple platforms:
- CEXs: Listed on MEXC, Gate.io, and Bitmart
- DEXs: Features a Uniswap liquidity pool with over $1.9 million TVL
This dual presence ensures strong market access for both retail and institutional traders.
How the Multibit Bridge Works
- Deposit: Users send BRC-20 tokens to a unique Multibit deposit address.
- Verification & Minting: The protocol verifies the deposit and mints an equivalent amount of $MUBI on Ethereum or BNB Chain.
- Security: Collected tokens are consolidated into cold wallets for secure storage.
- Withdrawal: When requested, EVM-based tokens are burned, and native assets are released from cold storage.
This mechanism enables seamless cross-chain movement while maintaining security and decentralization principles.
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Investment Potential
- Bitcoin Beta Exposure: As a low-cap project tied to Bitcoin’s ecosystem growth, $MUBI offers leveraged exposure to BRC-20 adoption.
- Market Leadership: As the first functional bridge of its kind, Multibit holds first-mover advantage in a rapidly expanding niche.
- EVM Adoption Surge: Increased Ordinals-inspired activity on Polygon and other EVM chains boosts demand for bridging solutions.
While promising, investors should note that supply concentration among early adopters poses potential volatility risks.
Spotlight on $ORDI: The Original BRC-20 Pioneer
What Is $ORDI?
$ORDI is the inaugural BRC-20 token, symbolizing innovation at the intersection of Bitcoin and digital assets. Built using the Ordinals protocol, it has a fixed supply of 21 million tokens, mirroring Bitcoin’s scarcity model.
All $ORDI were minted at genesis—no future issuance is possible—making it one of the most decentralized and transparent projects in the ecosystem.
No Traditional Fundraising
Unlike typical crypto projects, $ORDI had no private sale or VC backing. It was freely mintable upon launch, with users only paying network fees. This egalitarian approach aligns with Bitcoin’s ethos of permissionless access.
Market Presence
With a market cap exceeding **$1 billion** and ranked #61 globally, $ORDI trades primarily on top-tier centralized exchanges including:
- Binance
- OKX
- Bybit
There is currently no DEX liquidity, reinforcing its reliance on centralized markets.
Investment Opportunities
- Market Leadership: As the first-mover in BRC-20, $ORDI benefits from brand recognition and network effects.
- Bitcoin Beta Play: Offers amplified exposure to Bitcoin’s price action with added narrative-driven momentum.
- Deflationary Narrative: While supply is fixed, accidental loss of private keys or failed transactions may lead to gradual supply reduction—potentially increasing scarcity over time.
- EVM Integration Trends: Growing adoption of BRC-20 concepts across EVM chains indirectly boosts $ORDI’s relevance.
Despite its strengths, $ORDI’s volatility and limited trading venues necessitate cautious investment strategies.
Frequently Asked Questions (FAQ)
Q: What is the difference between Ordinals and BRC-20?
A: Ordinals refer to the protocol that assigns unique identities to satoshis, enabling NFT-like assets on Bitcoin. BRC-20 builds on Ordinals by using standardized JSON data to create fungible tokens.
Q: Can I trade BRC-20 tokens on decentralized exchanges?
A: Most BRC-20 trading occurs on centralized exchanges. Direct DeFi integration remains limited due to the lack of smart contract functionality.
Q: Is $MUBI available on major exchanges?
A: Yes, $MUBI is listed on several tier-two exchanges such as MEXC, Gate.io, and Bitmart, with liquidity also available on Uniswap.
Q: How was $ORDI distributed?
A: $ORDI was freely mintable at launch—anyone could claim tokens by paying Bitcoin network fees. No pre-mine or fundraising round existed.
Q: Are BRC-20 tokens secure?
A: While secured by Bitcoin’s network, their lack of smart contracts means users must rely on trusted platforms for trading and custody—introducing counterparty risk.
Q: What drives the value of BRC-20 projects like $MUBI and $ORDI?
A: Value stems from speculative demand, ecosystem growth, Bitcoin’s performance (beta exposure), and utility narratives such as cross-chain bridging or digital scarcity.