A blockchain developer plans to use the BRC-20 token standard to introduce decentralized finance capabilities to the Bitcoin network.
A blockchain developer going by the alias Mikael.btc, best known as the creator of the BRC-100 token standard, wants to spin off BRC-20 in an effort to roll out a new protocol designed to bring decentralized finance to the Bitcoin (BTC) network.
In an August 9 post on infrastructure.
BRC-20 Fork: BRC-100, Re-Activate BRC-20#Bitcoin needs DeFi infrastructures, #BRC100 and #RSM were both born to solve this problem, with similar concepts but different technologies: #Inscriptions and OP_RETURN.
Now the BRC-20 community and the BRC-100 community are going to split… pic.twitter.com/Qyi2F4wsqx
— Mikael.btc | BRC-100 & RSM (@MikaelBTC) August 9, 2024
According to Mikael.btc, the new protocol will leverage technologies such as Inscriptions – used to add metadata to Bitcoin’s sats – and OP_RETURN – a script that allows data to be stored in transactions – to enhance Bitcoin’s functionality, allowing users to access achieve decentralized financing.
“Each BRC-20 token is mapped to a BRC-100 token with the same ticker and offering. 100% of the new BRC-100 token will be distributed to the holders of the original BRC-20 token, with the exact same amount as the holding on BRC-20.”
Mikael.btc
After the fork, holders of BRC-20 tokens will automatically receive equivalent assets on the BRC-100 protocol, the developer added. However, those with BRC-20 tokens held on centralized exchanges will have to wait for the exchanges to distribute the new forked assets.
The push for defi on the Bitcoin network recently gained momentum after a research report from Pantera Capital, a crypto venture capital firm, predicted that the Bitcoin-based defi ecosystem could attract hundreds of billions of dollars in liquidity via web3 protocols, implying that Bitcoin’s defi ecosystem could attract hundreds of billions of dollars in liquidity. sector could achieve a market share comparable to that of Ethereum.
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