Key Points
- A blockchain developer plans to fork the BRC-20 token standard to bring decentralized finance to the Bitcoin network.
- Following the fork, holders of BRC-20 tokens will receive equivalent assets on the new BRC-100 protocol.
A blockchain developer, known by the pseudonym Mikael.btc, is proposing a fork of the BRC-20 token standard. The intention is to introduce decentralized finance (defi) capabilities to the Bitcoin network.
Mikael.btc, who is also the creator of the BRC-100 token standard, has outlined his plans for the fork. He believes the upgrade will address several shortcomings of the BRC-20 standard, including its limited programmability, scalability issues, and the lack of defi infrastructure.
Enhancing Bitcoin’s Functionality
The developer plans to utilize technologies like Inscriptions and OP_RETURN to improve Bitcoin’s functionality. Inscriptions are used to add metadata to Bitcoin’s sats, and OP_RETURN is a script that enables data storage within transactions. These technologies will allow users to engage with decentralized finance.
From BRC-20 to BRC-100
Mikael.btc explained, “Every BRC-20 token will be mapped to a BRC-100 token with the same ticker and the same supply. 100% of the new BRC-100 token will be distributed to the holders of the original BRC-20 token, with the exactly same amount as the holdings on BRC-20.”
After the fork, BRC-20 token holders will automatically receive equivalent assets on the BRC-100 protocol. However, those with BRC-20 tokens on centralized exchanges will need to wait for the exchanges to distribute the new forked assets.
The initiative to introduce defi to the Bitcoin network has gained traction recently. A research report from Pantera Capital, a crypto venture capital firm, suggested that the Bitcoin-based defi ecosystem could attract hundreds of billions of dollars in liquidity through web3 protocols. This suggests that Bitcoin’s defi sector could achieve a market share comparable to that of Ethereum’s.
