Blockchain
After a knowledge update on the standard, Binance Academy ORC-20 tokens, trading volume reached an all-time high on May 13.
You may be familiar with BRC-20 tokens, but have you heard of ORC-20 tokens?
The ORC-20 protocol builds on Ordinals and the BRC-20 token standard.
Learn more about ORC-20 tokens and how they compare to BRC-20 tokens ⬇️https://t.co/XVomctnq1s pic.twitter.com/Oehsf6W3Hl
— Binance Academy (@BinanceAcademy) May 13, 2023
According to data from Dune, the number of ORC-20 transactions on the Bitcoin blockchain reached 72,200 in a day on May 13, a record high, of which about 70,000 subscriptions were minted and 5.9 BTC were paid.
In addition, these ORC-20 Token transactions are mainly concentrated in PUNK, PEPE, MEME, etc. The number of BRC-20 transactions in the same day is about 265,000.
According to Binance, ORC-20 is an open standard designed to overcome the shortcomings of BRC-20. The goal of ORC-20 is to maintain backward compatibility with the BRC-20 while gaining adaptability, scalability, and security.
ORC-20 trading volume increases
BRC-20 was created on Bitcoin in March 2022 using the Bitcoin Ordinals protocol. It is a hot name right now, with a $1 billion market cap, especially after the rise of memecoins like Pepe (PEPE) this month.
There was a time when demand for the Bitcoin network peaked and transaction fees, as well as the above transaction congestion, occurred continuously. Earlier this month, Binance had to stop withdrawing BTC twice due to transaction congestion and only solved it by increasing the fees paid to miners. Bitcoin miner revenue also surpassed block rewards for the first time since 2017.
The standard is supported by the majority of the community, but much of it is criticized by Bitcoin purists. They believe that the conventional inscriptions enabled by the BRC-20 standard represent a departure from Bitcoin’s original purpose, which was primarily used as a decentralized medium of exchange and store of value. In addition, they argued that Ordinals added elements of centralization and jeopardized the idea of Bitcoin as a value-neutral, decentralized currency.
Out of discontent, some Bitcoin developers have proposed scrapping Ordinals and BRC-20 tokens, the main driver of recent network congestion and rising costs. Earlier this week, about 400,000 unconfirmed Bitcoin transactions were in the mempool waiting to be added to a block.
Currently, ORC-20 is still an experimental project and there is no guarantee of value for tokens created using this standard. Theoretically, it could improve Bitcoin token standards, but ORC-20 has been widely criticized for being complicated and offering no significant advantage over existing standards.
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