BRC-20 Token and trac: New Developments in the Bitcoin Ecosystem

The Bitcoin blockchain is experiencing a wave of innovation, with BRC-20 tokens and the trac project receiving significant attention. This article will explore these emerging technologies and their impact on the Bitcoin ecosystem.

Overview of BRC-20 Tokens

BRC-20 Token is an experimental token standard based on the Ordinal protocol. The Ordinal protocol assigns a unique serial number to the smallest unit of Bitcoin, satoshi (abbreviated as sat), making each sat unique. This mechanism not only supports token creation but also allows various content (such as images and videos) to be attached to a single sat, forming Bitcoin's native digital artworks.

Unlike traditional tokens, BRC-20 tokens do not require smart contracts or the Ethereum Virtual Machine (EVM). Users only need a Bitcoin wallet to mint and trade these tokens. BRC-20 tokens use JSON format to define attributes and functions, and inscribe them on sat.

BRC-20 Market Dynamics

Recently, the BRC-20 Token market has experienced explosive growth. Its market capitalization and trading frequency have significantly increased in just a month and a half, with trading volume at one point exceeding regular Bitcoin transactions on the Bitcoin blockchain. Many popular BRC-20 Tokens originate from internet culture and memes, such as Pepe and Meme. This trend has also brought additional transaction fee income to miners.

However, the minting volume of BRC-20 Tokens has gradually leveled off after an initial surge, indicating that the market may be entering a stabilization phase.

Challenges Faced by BRC-20 Tokens

Despite the innovation and appeal of BRC-20 Tokens, there are still some limitations and risks:

1. Accounting Mode: BRC-20 does not use the UTXO model, but instead employs a system similar to a memo system to record transactions. This method requires downloading all data locally and organizing it to obtain the final Token balance.

2. Index Centralization: Although the accounting process is decentralized, the indexing process still relies on centralized services. This may lead to security risks, and if the indexing provider acts maliciously, it could result in significant losses.

trac project: A new solution to the BRC-20 problem

In response to the challenges faced by BRC-20 tokens, the trac project has emerged. trac is a decentralized meta-protocol tracker based on the Bitcoin native chain, aimed at simplifying the management and trading process of BRC-20 tokens and Ordinal NFTs.

core functions of trac

1. Real-time data display: Provides market information such as issuance volume, circulation volume, holding addresses, and transaction records of BRC-20 Tokens and Ordinal NFTs.

2. Ordinal Content Verification: Allows users to view and verify the content inscribed on sat by entering the Ordinal serial number.

3. Fast Transfer: Supports peer-to-peer transactions of BRC-20 Tokens and Ordinal NFTs through QR code scanning.

4. Smart Contract Integration: Achieve advanced functions such as automatic exchange, auctions, and lending between tokens.

How to solve BRC-20 Token issues with trac

1. Reduce Costs: trac only needs to engrave the serial number on sat, rather than the complete JSON code, effectively lowering the data engraving costs.

2. Performance Improvement: Through technologies such as smart contracts and QR codes, trac significantly enhances the scalability, functionality, and user experience of BRC-20 Tokens.

3. Improve infrastructure: trac provides a mature wallet client, trading platform, and regulatory mechanism for BRC-20 Tokens.

4. Value Addition: trac enables users to easily achieve Token swaps and appreciation, while also supporting the appreciation and authentication of digital artworks.

Conclusion

The emergence of the trac project marks another important development in the Bitcoin ecosystem. By addressing many challenges faced by BRC-20 tokens, trac brings new possibilities and innovations to the Bitcoin network. It not only enhances the usability and security of BRC-20 tokens but also provides users with a richer decentralized application experience. As such projects continue to evolve, we have reason to anticipate that the Bitcoin ecosystem will welcome more exciting innovations and applications.