NFTs
How BRC-420 is unlocking the potential of Bitcoin NFTs
The emergence of the Ordinals protocol has transformed the way we perceive and interact with the world’s leading cryptocurrency network and asset. Launched in January 2023 by Bitcoin developer Casey Rodarmor, Ordinals allowed bitcoiners to “inscribe” media (images, text, audio, video) into satoshis, the lowest denomination of Bitcoin, effectively turning them into NFTs.
As important as Ordinals was, however, the subsequent arrival of BRC-20 – a token standard that allows users to physically mint and transfer tokens in Bitcoin – further cemented the vision. And if you know anything about token standards, they evolve. Therefore, the development of BRC-420 further expands the potential of cryptoassets on the Proof-of-Work blockchain.
What is BRC-420?
Launched last September, BRC-420 is an open-source asset management protocol that extends the capabilities of BRC-20 by supporting metadata capabilities. Inspired by Ethereum’s ERC-721 NFT standard, BRC-420 allows users to create, manage, and share complex asset formats through recursion. This includes game items, 2D and 3D animations, effects, and even metaverse game modules.
The underlying architecture of BRC-420 is based on the Bitcoin metaverse protocol Bitmap and the ordinals themselves. Interestingly, the protocol offers the ability to establish usage rights and royalties based on a single subscription to Ordinals, the terms of which are embedded in metadata and enforced by marketplaces and platforms that support BRC-420.
The BRC-420, in a relatively short period of time, has breathed new life into the Bitcoin NFT space, empowering creators and expanding use cases for BTC-based tokens, particularly in the metaverse realms. By leveraging the security and liquidity of Bitcoin while offering a user experience similar to Ethereum NFTs, the BRC-420 has generated great excitement.
Many projects are already using the BRC-420. Minerala Singapore-based cryptographic protocol, offers a BTC-inscribed cryptoasset based on BRC-420, backed by BTC mining power, allowing users to receive periodic interest on BTC through staking. Recursive doodinalsDesigned by the same team behind the BRC-420, it allows users to create their own recursive art using doodles or inscriptions of their choice.
And then there is BRC-420 Blue Boxthe first asset issued by Bitmap that has a total supply of 10,000.
Believe the BRC-420 hype
Merlin Chain, a Bitcoin Layer-2 solution that operates a multi-token Proof of Stake consensus, is an excellent example of a platform that leverages the power of BRC-420. Merlin Chain allows users to pledge BTC, MERL, or other conventional BRC-20 and BRC-420 assets to compete for node qualifications.
Less than six months after the protocol’s introduction last February, on-chain data revealed that more than $176 million in BRC-420 assets had entered Merlin Chain’s pledge activity.
Merlin Chain is the brainchild of the team that developed the BRC-420. With recent growth of 2,000% between March and April, Merlin Chain has become a top 10 network and is currently the largest sidechain in the growing Bitcoin ecosystem.
Committed to advancing Bitcoin by powering native BTC L1 assets and protocols, Merlin Chain supports multiple Bitcoin protocols, including Atomicals, Pipe, and Stamp, as well as BRC-20 and BRC-420.
Building a better Bitcoin ecosystem
The addition of metadata capabilities through BRC-420 has reinvigorated what can be achieved with crypto assets on the Bitcoin blockchain.
BRC-420 opens up a world of possibilities, from enabling more specialized functionality like governance, staking and compliance, to allowing developers to leverage existing innovations to create transferable assets in the metaverse.
As the Bitcoin DeFi, NFT, and metaverse landscape continues to evolve, BRC-420 will likely continue to fundamentally shape the future of the world’s leading crypto network.