The world of Bitcoin-based tokens has expanded with the introduction of the BRC-20 standard. This innovation allows users to create and trade fungible tokens directly on the Bitcoin blockchain using a method called inscription. Whether you're new to the concept or looking to refine your understanding, this guide provides essential insights into common questions and processes related to BRC-20 token inscription and trading.
How to Inscribe BRC-20 Tokens
Inscribing a BRC-20 token involves embedding specific data into a Satoshi, the smallest unit of Bitcoin. This process requires a Bitcoin wallet that supports Ordinals protocol and enough BTC to cover transaction fees. The steps generally include:
- Choosing a suitable wallet.
- Preparing the data you wish to inscribe (text, image, etc.).
- Initiating the inscription process through the wallet’s interface.
- Paying the network fee and waiting for confirmation.
Since the process can be technical, it’s crucial to follow a reliable tutorial or use a trusted platform. 👉 Explore step-by-step inscription methods
Why Is My BRC-20 Transaction Not Confirmed?
BRC-20 inscription and trading transactions require block confirmation on the Bitcoin network. Due to a significant increase in transactions, network congestion can occur. Your transaction might take anywhere from one to two days to be fully confirmed. If your transaction shows a pending status, you can track its progress using a blockchain explorer. We recommend waiting patiently for the block verification to complete.
Common Reasons for Failed BRC-20 Inscription Transactions
Several factors can lead to a failed inscription attempt:
- Insufficient Gas Fees: During the inscription process, if the gas fee paid is too low, miners may prioritize other transactions.
- Bitcoin Network Congestion: High traffic periods can delay or drop transactions.
- Incorrect Status Assumption: The minting status might show as complete, but your transaction could still be awaiting blockchain confirmation.
Important Note: If your inscription process fails, the gas fee paid is non-refundable as it compensates miners for their work.
How to Use an EVM Network Inscription Tool
For users familiar with Ethereum Virtual Machine (EVM) networks, some tools allow cross-chain inscription processes. Here’s a simplified guide:
- Navigate to your wallet’s Marketplace and select Ordinals, then choose the Inscription Center.
- In the Network field, select the network you wish to use for the inscription.
- Choose Single if you are inscribing individual data. For multiple data inscriptions simultaneously, select Batch.
- Enter your transaction data in the Text Input field, excluding the "Data:" prefix, which is often auto-filled by the system.
- Select your preferred repetition rate in the Transaction Repeat field. Note that the number of transaction data entries you list determines the number of signatures required for the inscription operation.
- Select Confirm to complete the inscription transaction.
👉 Get advanced inscription tools and features
How to Buy and Sell BRC-20 Tokens
Buying and selling BRC-20 tokens typically occurs on specialized marketplaces or exchanges that support the Ordinals protocol. The process involves:
- Finding a marketplace that lists BRC-20 tokens.
- Connecting your Bitcoin wallet.
- Placing buy or sell orders based on market availability.
- Executing the trade and managing your assets within your wallet.
Always ensure you are using a reputable platform to avoid potential risks.
What to Do If You Don't Have Enough BTC
Insufficient BTC balance is a common hurdle for inscription and trading activities. To manage your assets effectively:
- Consider purchasing additional BTC from a trusted exchange.
- Review your transaction history to understand fee allocations.
- Plan your transactions during lower network congestion periods to potentially reduce fees.
Proper asset management ensures you have enough funds for both transaction fees and the inscription process itself.
How to Unspent Transaction Outputs (UTXOs)
Unspent Transaction Outputs (UTXOs) are fundamental to how Bitcoin transactions work. Managing them is crucial for efficient wallet operation. Here’s a simple guide to consolidating or "opening" UTXOs:
- Go to your Wallet, select BTC, and then choose UTXO.
- Select the specific UTXO assets you wish to open and then choose Open UTXO. You can select all available UTXOs if desired.
- Confirm the action. The opened UTXOs will then be displayed in the Opened section.
Critical Notes:
- Ensure that the UTXOs you are opening are not associated with valid inscriptions or NFTs. Opening such UTXOs can lead to the loss of associated BRC-20 tokens or NFTs.
- If you accidentally open a UTXO linked to a valid asset, you may select Restore. However, be aware that restored assets can typically only be used for gas fees and not for future inscriptions. This action does not affect inscriptions already present on your wallet address.
Frequently Asked Questions
What exactly is a BRC-20 token?
BRC-20 is a token standard on the Bitcoin blockchain that allows the creation and transfer of fungible tokens through inscribed JSON data. It leverages the Ordinals protocol to embed information directly into individual satoshis.
Are BRC-20 tokens as secure as Bitcoin?
Since BRC-20 tokens exist on the Bitcoin blockchain, they benefit from the same underlying security and decentralization. However, the smart contract logic is minimal compared to other ecosystems, so security also depends on the tools and platforms used for interaction.
Can I inscribe any type of data as a BRC-20 token?
BRC-20 tokens specifically use a standard JSON format to define token properties like ticker, supply, and minting rules. While the Ordinals protocol allows various data types (images, text), for a token to be BRC-20 compliant, it must adhere to this specific standard.
Why are transaction fees for BRC-20 operations sometimes high?
Fees are determined by Bitcoin network demand and the data size of the inscription. During periods of high activity, fees increase due to competition for block space. Complex inscriptions with more data also require higher fees.
What happens if I send a BRC-20 token to a wrong address?
Transactions on the Bitcoin blockchain are irreversible. Sending a BRC-20 token to an incompatible address or one you don't control will likely result in the permanent loss of that token. Always double-check addresses before confirming a transaction.
Is there a way to recover lost gas fees from a failed transaction?
No, gas fees are paid to miners for processing transaction attempts, regardless of whether the transaction ultimately succeeds or fails. These fees are non-refundable.