Bitcoin-based token standard BRC-20 has experienced a surge in popularity and usage due to the recent memecoin phenomenon, but it still has certain restraints that limit its development. A recent report by crypto exchange Bitfinex emphasizes the token standard’s potential, with data indicating that its market capitalization had reached nearly $900 million at one point. Transactions across the network have increased significantly, with BRC-20 Ordinals transactions surpassing non-BRC-20 transactions by over four million.

Some of the most in-demand tokens among BRC-20 include ORDI, NALS, PIZA, PEPE, and MEME, however the token standard still faces certain limitations. One significant limitation is the lack of use cases, making it difficult for developers to identify practical applications for the token. Additionally, there's a lack of Ethereum Virtual Machine compatibility, hindering access to network resources and building capabilities, and the tokens consume a significant amount of block space, which could result in network congestion.

Despite these limitations, Bitcoin’s proof-of-work consensus mechanism provides a great degree of security, which is a major advantage. With more use cases and suitable tools being developed, the BRC-20 token standard may prove to be extremely useful in the crypto sphere. Identifying these use cases and introducing new tools should help promote the token standard’s adoption and widen its ecosystem.



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