ORDI and BRC-20: Bitcoin can do more than just transfers

In March 2023, something called ORDI appeared on Bitcoin, directly breaking many people's understanding of Bitcoin's functionality - it turns out that Bitcoin can also issue coins, mint NFTs, and create digital assets.

Why can Bitcoin suddenly do these things?

It relies on the Ordinals protocol. Simply put: previously, the smallest unit of Bitcoin was satoshi (, which could only be used for transactions. Now, through Ordinals, you can directly engrave data on satoshis—text, images, audio, and video are all possible, which is equivalent to adding a new functional module to Bitcoin.

What is the relationship between ORDI and BRC-20?

ORDI is the first to eat the crab——it is the first BRC-20 token on the Bitcoin chain. BRC-20 is the Bitcoin version of ERC-20 (Ethereum's token standard), but the gameplay is different:

• ERC-20 relies on smart contracts, varied but complex.
• BRC-20 writes data directly on Bitcoin without the need for external smart contracts, which is simple but has limited functionality.

What are the benefits of doing this? It operates directly on the most secure chain, Bitcoin, without relying on other platforms. The downside is that it cannot achieve complex DApp functionalities.

Why did ORDI rise from 0 to a market value of 140 million USD?

Core Reason: This is the first major innovation of Bitcoin. After its listing, it attracted a large number of traders, combined with scarcity (the first to take the plunge is always the hottest), the price skyrocketed. However, there is also a bubble here - many people are drawn by the speculation rather than being optimistic about the technology itself.

The Battle Between Two Factions in the Bitcoin Community

Supporters: Bitcoin can finally do more, and the ecosystem will be richer.

Opponents (including renowned developer Luke Dashjr): This is “spamming” on Bitcoin, which will cause network congestion, increased transaction fees, and goes against the original intention of Bitcoin's simplicity and efficiency.

Real issue: When there are more BRC-20 tokens, the Bitcoin network will indeed slow down, and transaction fees will also rise, which is unavoidable.

How big are the technical barriers?

Three Major Points:

1. Network Congestion——Bitcoin is already slow, and these new data will make it even more congested.
2. Limited Functionality — BRC-20 cannot implement complex DApps and is only suitable for simple coin operations.
3. Cross-chain dilemma - Currently, BRC-20 can only be used on Bitcoin and cannot interoperate with other chains like Ethereum.

Is there hope for the future?

Yes. The Taproot upgrade has paved the way for complex functionalities, and developers are exploring the possibilities of BRC-20 cross-chain. If it can truly connect with ecosystems like Ethereum, the application space for BRC-20 tokens will be much larger. Coupled with the high enthusiasm of the community, new tools and projects are constantly emerging, and the prospects are promising.

But let's be clear about the facts: currently, ORDI is mainly supported by speculation, with significant price fluctuations and high risks. If you want to participate, you must do your homework and not follow the crowd.