ORC-20 Trading Volume Record High After Binance Academy Hint
You may be familiar with BRC-20 tokens, but have you heard about ORC-20 tokens?
The ORC-20 protocol builds on Ordinals and the BRC-20 token standard.
Learn more about ORC-20 tokens and how it compares with BRC-20 tokens ⬇️https://t.co/XVomctnq1s pic.twitter.com/Oehsf6W3Hl
— Binance Academy (@BinanceAcademy) May 13, 2023
According to data from Dune, the number of ORC-20 transactions on the Bitcoin blockchain in a day reached 72,200 on May 13, a record high, of which around 70,000 Inscriptions were minted with 5,9 BTC being paid.
In addition, these ORC-20 Token transactions are mainly concentrated in PUNK, PEPE, MEME, etc. The number of BRC-20 transactions on the same day is about 265,000.
According to Binance, ORC-20 is an open standard designed to overcome the shortcomings of BRC-20. The goal of ORC-20 is to maintain backward compatibility with the BRC-20 while overcoming adaptability, scalability, and security.
BRC-20 was created on Bitcoin in March 2022, using the Bitcoin Ordinals protocol. It’s a hot name right now, having hit the $1 billion mark in market capitalization, especially after the rise of memecoins like Pepe (PEPE) this month.
There was a time when the demand for the Bitcoin network spiked, and the transaction fees, as well as the above transaction congestion, occurred continuously. Earlier this month, Binance had to stop twice withdrawing BTC because of transaction congestion and only solved it by increasing the fees paid to miners. Bitcoin miner fee revenue also surpassed block rewards for the first time since 2017.
The standard is supported by the majority of the community, but a large part is criticized by Bitcoin purists. They believe that the conventional inscriptions enabled by the BRC-20 standard represent a departure from the original purpose of Bitcoin, which was primarily used as a decentralized medium of exchange and store of value. Furthermore, they argued that Ordinals added elements of centralization and jeopardized the idea of Bitcoin as a value-neutral, decentralized currency.
Out of dissatisfaction, some Bitcoin developers have proposed to delist Ordinals and BRC-20 tokens, the leading cause of recent network congestion and mounting fees. Earlier this week, around 400,000 unconfirmed Bitcoin transactions in the mempool were waiting to be added to a block.
Currently, ORC-20 is still an experimental project, and there is no value guarantee for tokens created using this standard. Theoretically, it could improve token standards for Bitcoin, but there has been a lot of criticism surrounding ORC-20 that they are complicated and do not offer a significant advantage over existing standards.
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