BRC-20 Tokens: What Are They, How They Work and How to Make Them?

The crypto space continues to innovate every day. Such innovations include new standards, protocols & the new ways of opportunities. One of the most thrilling recent innovations has been the introduction of BRC-20 tokens.

These tokens have added more functionality on the Bitcoin network. 

What Are BRC-20 Tokens?

The BRC-20 tokens refer to the fungible digital currencies which exist in the Bitcoin blockchain network. The abbreviation “BRC” means “Bitcoin Request for Comment.” This token protocol came into existence in March 2023 through a developer known as Domo. It has been designed based on the ERC-20 token protocol used in Ethereum.

However, there is one fundamental difference between the two protocols. It involves the fact that the BRC-20 tokens can be found in Bitcoin but not in Ethereum. It utilizes a protocol called “Bitcoin Ordinals” to write information into single satoshis. The term “satoshi” refers to the smallest Bitcoin unit.

What is the Difference Between BRC-20 Tokens vs ERC-20 Tokens?

The table below gives a simple comparison of both token st& theards:

What are the Popular BRC-20 Tokens in 2026?

The BRC-20 space has grown to include thousands of tokens. These are some of them which are there:

• ORDI – The first BRC-20 token to be released on the Bitcoin blockchain. Maximum supply: 21 million & traded on big exchanges such as Binance & the OKX.
• SATS – Named after the satoshis, the smallest unit of Bitcoin. Became one of the largest BRC-20 tokens based on market capitalization.
• MEME – Memecoin-inspired token built on the Bitcoin blockchain.
• RATS – Memecoin token backed by a highly speculative community.
• SHIB (BRC-20 Token) – The Shiba Inu token migrated to the BRC-20 blockchain & thus offered lower fees for SHIB holders.

The market for BRC-20 tokens has grown at a very fast rate. Thousands of tokens have already been minted since the standard was first launched. 

How to Create BRC-20 Tokens?

The process of creating your own BRC-20 token is now easier than ever before. This simple & practical guide will help you get started right away.

1: Create Bitcoin Wallet:-

The wallet you pick must support P2TR (Pay-to-Taproot) addresses to work correctly. These wallets like Unisat Wallet, Xverse & Ordinals Wallet are popular options for BRC-20 users. They support all BRC-20 token operations out of the box.

The coin control feature must be enabled in your wallet at all times. It lets you to manage the individual satoshis & prevents accidental spending of inscribed satoshis.

2: Fund Your Wallet With Bitcoin:-

The wallet needs Bitcoin (BTC) to cover all inscription fees. The amount needed depends on the current Bitcoin network fees at the time. It is smart to keep the extra BTC to cover any surprise costs that come up.

3: Go to any Platform:-

The next step is to visit a trusted inscription platform like Unisat.io. These platforms provide a simple interface for creating your token without writing code manually. They make the whole process easy & very much beginner friendly.

4: Define Your Token:-

The required details for your BRC-20 token need to be filled in carefully. This includes:

• Ticker A short 4-letter name for your token (e.g., MYCO)
• Max Supply The maximum number of tokens that will ever exist
• Limit Per Mint How many tokens one user can mint in a single operation

5: Pay the Inscription Fee & the Deploy:-

The transaction gets submitted once your JSON details are all set & ready. The user can now select their preferred network fee speed such as slow, normal or fast. The token gets deployed on the Bitcoin blockchain after paying the fee.

6: Mint Your Tokens:-

The platform needs to be revisited after deployment is complete. The user searches for their token ticker on the platform. The mint function is then used to generate the actual tokens for use. The number minted per session cannot go above the limit set earlier.

7: Transfer & the Trade:-

The minted tokens can be sent to any compatible wallet address with ease. They can also be listed on BRC-20 marketplaces for trading. These platforms like Unisat Marketplace & OKX Ordinals support BRC-20 token trading.

What Are the Risks of BRC-20 Tokens?

The following key risks apply to BRC-20 tokens:

• The off-chain indexer system means BRC-20 balances are not enforced by the Bitcoin protocol itself & depend on indexers operating correctly.
• The BRC-20 st& theard was described by its creator Domo as experimental & was never intended to be the final fungible token st& theard on Bitcoin.
• The majority of the BRC-20 tokens are meme tokens with no real utility & can lose all value very quickly.

What Is New With BRC-20 in 2026?

The BRC-20 technology will have advanced a lot. The introduction of the swap function to the BRC-20 network is made possible through the launch of the BRC2.0 protocol that enables the swapping of tokens either among themselves or with BTC, and all this without using any third-party service. With the aid of the second layer solutions of Bitcoin, the BRC-20 tokens can now be moved off the main chain and therefore enjoy faster and cheaper transactions.

Conclusion

The BRC-20 tokens have opened a new chapter for the Bitcoin blockchain. They allow anyone to create, mint & transfer fungible tokens directly on the most secure blockchain in the world. These BRC-20 tokens have proven that Bitcoin is capable of far more than just peer-to-peer payments since their start in March 2023.

Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.