How To Mint BRC-20 Tokens On The Bitcoin Network

Scott Matherson

1 year ago

6 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

What Are BRC-20 Tokens?

BRC-20 tokens open doors for developers to build their own decentralized applications (dApps) with unique economies on the Bitcoin network. This fosters community engagement through internal currencies, and attracting investment through innovative token sale structures.

BRC-20 tokens are fungible tokens built on the Bitcoin network using the Ordinals protocol. It also utilizes inscriptions containing JSON (JavaScript Object Notation) data to facilitate the deployment of token contracts, minting tokens, and transferring tokens. Presently, the BRC-20 token standard offers the ability to create a BRC-20 token using the deploy function, mint a specified quantity of BRC-20 tokens using the mint function, and transfer a designated amount of BRC-20 tokens through the transfer function.

BRC-20 and ERC-20 share some similar characteristics and functional concepts, but they are not identical due to their different underlying blockchains and implementation details. One of the differences is that BRC-20 tokens operate on the Bitcoin blockchain, while ERC-20 tokens reside on the Ethereum blockchain. This leads to differences in technical implementations and transaction fees.

Similar to ERC-20 tokens, BRC-20 tokens are fungible, meaning they can be exchanged on a one-to-one basis with equal value. They can be created, transferred, and traded on the Bitcoin network using decentralized marketplaces like Magic Eden with compatible wallets and decentralized exchanges that support the BRC-20 standard.

BRC-20 tokens breathe vitality into the Bitcoin network, acting as programmable extensions that expand the scope beyond basic transfers. They empower the Bitcoin network by enabling the development of DApps, fostering communities, and facilitating ownership of real-world assets. This dynamic frontier presents exciting opportunities for engagement, incentives, and innovation.

However, it is essential to navigate the technical intricacies and embrace the evolving infrastructure. BRC-20 tokens, still a work in progress, possess tremendous potential to reshape the future of Bitcoin, unveiling a multitude of tokenized possibilities along the way.

Now, let’s dive into the exciting world of building your own BRC-20 tokens! As we discussed, platforms like Magic Eden offer a gateway to creating and trading these digital assets.

Creating BRC-20 Tokens On The Bitcoin Network

Creating BRC-20 tokens involves defining the token’s parameters, such as its name, symbol, and total supply, as well as any additional functionality you want to incorporate, such as token burning or minting restrictions. Once the smart contract is written, it needs to be compiled into bytecode and deployed onto the Bitcoin blockchain using the platform’s provided tools. This deployment process usually involves paying gas fees to execute the necessary transactions. Platforms like Magic Eden enable users to create their own BRC-20 Tokens.

First, visit the Magic Eden homepage, and click on “Connect Wallet” at the top right corner, as shown in the image below:

For the best wallets to use for BRC-20 tokens on the Bitcoin network, check here.

To initiate the creation of your BRC-20 token, it is essential to deploy it first. Adhere to the following instructions to proceed:

Next, click on the “Inscribe” button. (The Inscribe button pops up after you click on the “Mint” icon situated towards the top left of the screen).

Next, Click on the “BRC-20 ” tab at the top of the screen.

Then, follow these instructions:

Ticker: Select a four-letter phrase to serve as the unique identifier for your token. For instance, widely recognized BRC-20 tokens have utilized tickers like ORDI or OXBT. Establish the maximum quantity of tokens that will be available for minting. Specify the highest number of tokens that can be minted in a single transaction. Select the desired parameters and click on “Next”.

Choose the desired Bitcoin Network Fee from the options available, such as Low, Medium, or High. After making your selection, proceed by clicking the “Inscribe” button. (Ensure that the chosen ticker is not already deployed to avoid transaction failure. Magic Eden will automatically check this unless instructed otherwise).

Now, wait for the transaction to be confirmed by the Bitcoin network. Confirmation times may vary.After the confirmation, check your wallet. Upon successful confirmation, you will receive a “Deploy” inscription, signifying that you can proceed to mint your tokens. The provided example illustrates a “Deploy” inscription within the Xverse wallet.

Minting Your BRC-20 Token

Having successfully deployed your BRC20 token, follow these instructions to mint it. Navigate back to the ‘Inscribe Ordinals’ modal located on the Magic Eden homepage. Within the modal, click on the “BRC-20 Mint” tab to proceed.

Enter the four-letter phrase that you deployed earlier, indicate the desired quantity of tokens you intend to mint, and specify the number of mint inscriptions you wish to generate.

Note: The maximum number you can mint per transaction has to be the same with the value set in the “Limit per mint” during the deploy process. Now, click on the “Next” button and select the network fee. After selecting the desired fee rate, click the “Inscribe” button. In the following example, 63 BRC-20 tokens are being minted in three batches of 21 each.

A set of mint transaction links will be provided. Please note that confirming the mint transactions once again may take some time.

After confirmation, you will receive the mint inscriptions in your connected wallet.

Congratulations, you have successfully created your first BRC-20 Token!

Conclusion

BRC-20 tokens offer fungible tokenization capabilities within the Bitcoin network, enabling a range of applications and use cases. As the blockchain industry progresses, both NFTs and BRC-20 tokens assume crucial roles in shaping the trajectory of digital ownership and decentralized finance (DeFi).

BRC-20 tokens introduce fungible tokenization capabilities within the Bitcoin network, providing the ability to create and exchange interchangeable tokens. This opens up a wide array of possibilities for various applications and use cases within the blockchain industry. As the blockchain ecosystem continues to advance, both NFTs and BRC-20 tokens play pivotal roles in shaping the direction of digital ownership and decentralized finance, driving innovation, and paving the way for a more inclusive and decentralized financial landscape.

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.