The OKX exchange announced a proposal outlining a new open source standard for creating tokens, dubbed BRC-30. This standard is based on the popular BRC-20 tokens that can be created using the Ordinals protocol, an innovation that has generated controversy since its launch in February and is currently in high demand, congesting the Bitcoin network and increasing transaction fees. .
According to the proposalBRC-20 tokens are “an extended version” of BRC-20 fungible tokens, which They present functions to make staking, deposits, minting or minting and withdrawals. “This proposal introduces a staking mechanism within the Bitcoin network designed specifically for BRC-20 or bitcoin tokens,” the document states.
Through this system, bitcoin and BRC-20 token owners will be able to use your assets to stake them in a staking protocol and receive BRC-30 tokens as a reward. They can also generate new tokens by creating a pool for other users to stake with BTC and BRC-20.
Recall that BRC-20 tokens were proposed on an experimental basis just over a month ago. However, the ease of use of this type of token (especially in terms of its creation and minting) and the popularity of memecoins today, gave rise to a market that grew rapidly. As a consequence, the Bitcoin network has remained congested and with commissions in the range of USD2 and USD5 per transaction. At peak demand, commissions cost up to USD 20 on average.
The main beneficiaries of this situation have been the miners of the network, who perceived an increase in commission income that, in some way, made it possible to forget about the bad moment the industry is going through in terms of profits.
The arrival of the new BRC-30 tokens could represent a further increase in demand for block space, to materialize the formation of a market. The explanation has to do with the method these tokens use to record their issuance and each of the transactions. In a nutshell, every time a token is generated and any exchange, an enrollment in Bitcoin needs to be executed through the Ordinals protocol.
Each one of these inscriptions can be considered an NFT, it is expressed in JSON text format, a very light format in itself but versatile enough to record the necessary instructions of the activity of a token transaction. This way, each operation with these tokens generates a transaction, which in turn competes with regular Bitcoin transactions.
Currently, developers and the community are debating the relevance of recording data in the Bitcoin file that does not correspond to BTC exchanges. The truth is that with the advent of improvements such as Taproot, which allow more complex transactions such as those that gave rise to the Ordinals protocol to be executed, the gateway to a large amount of financial activity opens wide. Proof of this is the ability to stake through a protocol anchored to Bitcoin mainnet transactions.