Bitcoin Developers Collaborate to Establish BRC-20 Token Standard
A group of Bitcoin developers, known as the Layer 1 Foundation, has come together to govern the BRC-20 fungible token standard in response to the increasing popularity of the Ordinals protocol. The Layer 1 Foundation recently announced its new BRC-20 governance structure via a tweet, revealing the appointment of several leading BRC-20 indexers as collaborators. This collaborative effort aims to ensure effective governance and maintenance of the BRC-20 protocol.
BRC-20 Governance Structure
The Layer 1 Foundation has introduced a shared governance structure for the BRC-20 standard, with participation from prominent BRC-20 indexers such as Hiro, Alex Labs, Oyl Dynamics, Allium Labs, and UTXO Management. Best in Slot, an Ordinals aggregator, is also involved in maintaining the BRC-20 protocol alongside Unisat, a Bitcoin wallet developer.
Resolution of Disputes
Prior to this collaboration, there was a dispute between Domo and Unisat regarding an Ordinals upgrade known as Jubilee. Domo expressed concerns about potential issues with indexing BRC-20 tokens and considered Jubilee to be a hard fork. However, Unisat Wallet founder Lorenzo clarified that a hard fork was not part of the plan.
Bitcoin Ordinals and its Significance
The Ordinals protocol plays a crucial role in the post-halving economy of the Bitcoin network. Halving is a quadrennial event that reduces mining rewards by half. This event contributes to increasing scarcity and has historically led to price rallies. The upcoming halving is expected to have a similar impact due to high institutional demand for Bitcoin following the launch of eleven Bitcoin ETFs.
Alternative Revenue Stream
Ordinals transaction fees serve as an important alternative revenue stream for miners. Currently, these fees account for approximately 20% of minersโ total revenue. As Bitcoin gains popularity, the demand for Bitcoin NFTs has surged, with Ordinals NFTs recently surpassing Ethereum NFTs in sales volume.
Layer 2 Network and Scalability
In addition to Ordinals, Bitcoin has experienced significant growth in its layer 2 network. These layer 2 solutions enable Bitcoin to achieve scalability and speed in various applications, similar to Ethereum. This development expands the functionality of Bitcoin, making it a commercially important blockchain.
Hot Take: Bitcoin Developers Unite to Standardize BRC-20 Tokens
The collaboration among Bitcoin developers to establish a standardized governance structure for BRC-20 tokens is a significant step towards ensuring effective management and maintenance of the protocol. With the increasing popularity of the Ordinals protocol and the upcoming halving event, it is crucial to have a unified approach to governance in order to support the post-halving economy and provide alternative revenue streams for miners.
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