BRC-20 Token and Trac: New Developments in the Bitcoin Ecosystem

The Bitcoin ecosystem is undergoing a wave of innovation, with BRC-20 tokens and the newly launched Trac platform taking center stage. These developments bring new functionalities and use cases to the Bitcoin network, while also sparking discussions and attention.

BRC-20 Token Overview

BRC-20 Token is an experimental token standard based on the Bitcoin blockchain. It utilizes the Ordinal protocol to assign a unique serial number to each satoshi, enabling the creation and transfer of fungible tokens on the Bitcoin network. This innovative approach does not require smart contracts or the Ethereum Virtual Machine; participation only requires a regular Bitcoin wallet.

The Ordinal protocol also supports attaching various content (such as images, videos, etc.) to a single satoshi, making it a Bitcoin-native digital artwork, that is, an NFT. BRC-20 tokens use JSON format to define token attributes and functions, and inscribe them on satoshis, enabling peer-to-peer transfer and exchange.

BRC-20 Market Data

Recently, the BRC-20 Token market has experienced explosive growth. In just a month and a half, its market value and transaction counts have significantly increased, with trading volume at one point surpassing ordinary Bitcoin transactions on the Bitcoin blockchain. Many BRC-20 Tokens are created based on internet culture and popular memes, such as Pepe and Meme. This emerging type of token has also brought additional transaction fee revenue to miners.

However, the minting volume of BRC-20 Tokens has stabilized after a period of rapid growth.

Challenges Facing BRC-20 Tokens

Despite the innovation and appeal of BRC-20 Tokens, it also faces some limitations and risks:

1. Accounting Model: BRC-20 does not use the UTXO model, but instead employs a note-like system to record transactions, which results in the inability to directly read the Token balance on-chain.

2. Indexing Dependency: It is necessary to download all data locally and organize it in order to obtain the final Token balance, a process known as indexing.

3. Centralized Risk: Although the accounting process is decentralized, the indexing process is still centralized at present. If a centralized exchange directly uses data from a certain index provider, and that provider acts maliciously, it could lead to serious consequences.

Introduction to the Trac Platform

To address the challenges faced by BRC-20 tokens, a new platform called Trac has emerged. Trac is a decentralized meta-protocol tracker based on the Bitcoin native chain, designed to simplify the process for users to track and manage BRC-20 tokens and Ordinal NFTs on the Bitcoin network.

The core features of Trac include:

1. Real-time data display: Show market information such as the issuance volume, circulation volume, holding addresses, and transaction records of BRC-20 Tokens and Ordinal NFTs.

2. Ordinal Content Verification: Allows users to view and verify any content inscribed on a satoshi by entering the Ordinal serial number.

3. Convenient Trading: Supports quick sending and receiving of BRC-20 Tokens and Ordinal NFTs by scanning QR codes.

4. Smart contract functionality: Achieve advanced features such as automatic exchange, auction, and lending between BRC-20 tokens and Ordinal NFTs.

How Trac Solves the BRC-20 Token Issues

The Trac platform addresses some of the challenges faced by BRC-20 tokens in the following ways:

1. Reduce costs: Trac only needs to engrave a serial number on the smart contract, rather than the entire JSON code, thus reducing the data engraving costs.

2. Improve performance: Utilizing technologies such as smart contracts and QR codes, it has enhanced the scalability, functionality, and user experience of tokens.

3. Improve infrastructure: Established a mature wallet client, trading platform, and regulatory mechanism to provide users with a unified interface and protocol.

4. Increased Value: The convenient token swaps and appreciation features, along with the display and authentication of digital artworks, have added more value to BRC-20 Tokens.

Summary

The launch of the Trac platform marks an important step for the Bitcoin ecosystem in addressing the challenges posed by emerging token standards. By providing comprehensive tracking and management tools, Trac not only addresses some of the technical and usability barriers faced by BRC-20 tokens but also opens up new application scenarios for the Bitcoin network. This innovation is expected to promote further development of the Bitcoin ecosystem, bringing users a more diverse and convenient decentralized application experience.