There is no BRC-20

Ty Everett ([e-mail])

Abstract

This document serves to clarify that there is no BRC-20 standard for tokenization on Bitcoin SV. While Ethereum has the ERC-20 standard for account-based tokens, there is no equivalent for UTXO-based systems such as Bitcoin SV. In order to avoid confusion and prevent people from conflating ERC-20 with BRC-20, it is necessary to clarify that BRC-20 does not exist on Bitcoin SV. Instead, proposals for tokenization should be judged on their own merits. Being associated with ERC-20 will not make any specific tokenization proposal better, and there is not a desire to confer greater legitimacy to one proposal or another.

Motivation

As the Bitcoin ecosystem continues to mature and grow, there is an increasing desire to create standards for tokenization. However, it is important to recognize that the architecture of Bitcoin is fundamentally different from that of Ethereum. While Ethereum is an account-based system, Bitcoin is a UTXO-based system. This means that there is no direct equivalent for something like ERC-20, which defines account-based tokens on top of Ethereum. The goal of this document is to prevent unnecessary confusion.

Arguments

• UTXO-based systems are fundamentally different from account-based systems. While Ethereum has the ERC-20 standard for account-based tokens, there is no equivalent for UTXO-based systems such as Bitcoin. Tokenization will necessarily require a different approach, one which should not be conflated.

• Avoiding confusion is essential. If there were a BRC-20 standard for Bitcoin SV, it would likely be confused with the ERC-20 standard on Ethereum. This could lead to a lack of clarity and understanding among developers and users, which could ultimately harm the growth and adoption of tokenization in both Bitcoin and Ethereum.

• Proposals for tokenization should be judged on their own merits. The absence of a BRC-20 standard on Bitcoin SV does not mean that tokenization is not possible. Instead, proposals for tokenization should be evaluated based on their own technical merits and practical considerations. A proposal called BRC-20 will not be better on account of its name.

In summary, there is no BRC-20 standard for tokenization on Bitcoin SV. While there may be a desire to create such a standard, it is important to recognize that the architecture of Bitcoin is fundamentally different from that of Ethereum. Instead of trying to emulate the ERC-20 standard, proposals for tokenization should be evaluated based on their own technical merits and practical considerations. This approach will ultimately lead to a more mature and professional ecosystem for tokenization.

As with any other BRC, tokenization proposals will be assigned sequential numbering.