BRC

What Is BRC? How Is BRC Related to Bitcoin?

BRC stands for “Bitcoin Request for Comment.” It refers to community-driven proposals and conventions initiated on the Bitcoin network. Rather than changing Bitcoin’s core protocol, BRC operates at the application layer by standardizing data formats and interpretation methods, enabling new use cases like tokens and NFTs with agreed-upon rules.

In essence, BRC functions as a set of usage instructions and conventions. Developers document operational procedures and data formats, while wallets and indexers read and write according to these guidelines. This ensures different products can interpret on-chain data consistently and work together seamlessly.

How Is BRC Different from BIP? What Role Does BRC Play?

The primary distinction between BRC and BIP lies in what they seek to change. BIP (Bitcoin Improvement Proposal) introduces modifications to the Bitcoin protocol or standard processes, impacting consensus or system-level functions. In contrast, BRC is a community convention mainly focused on defining how to implement new features using existing capabilities at the application layer.

BRC’s role is “non-intrusive and standardized expression.” It typically does not require network-wide node upgrades; as long as wallets, indexers, and applications follow the same convention, fungible tokens, NFTs, and other assets can be recognized and used within the Bitcoin ecosystem.

How Does BRC Operate Based on Ordinals Inscriptions? What Is the Principle Behind BRC?

Most BRC proposals rely on Ordinals and inscriptions. Ordinals allow each satoshi (the smallest unit of Bitcoin) to be uniquely numbered and data—such as text or images—to be “attached” to specific sats. Inscriptions refer to embedding such data into transactions, recording it on-chain alongside the relevant sat.

A typical BRC proposal specifies which data to write and in which fields—such as operation type, token symbol, quantity—organized in structured text. Indexers then read these inscription records. Acting like accountants, indexers scan blocks and transactions following BRC rules to determine ownership of tokens or NFTs.

Key aspects of this approach are: First, data is genuinely written onto the Bitcoin blockchain; second, interpretation rules are documented in BRC specifications; third, asset balances and states are determined by indexers adhering to the same rules—which is why alignment in versions and details among indexers is crucial.

What Are Common BRC Proposals? What Are the Functions of BRC-20, BRC-721, and BRC-69?

BRC proposals generally focus on “how to express assets and actions.”

• BRC-20: Designed for representing fungible tokens. It uses structured text to define actions like “deploy,” “mint,” and “transfer.” Indexers calculate balances accordingly. Notable examples include ORDI, which is widely supported by exchanges and wallets.
• BRC-721: Used for encoding NFT metadata and identification standards on Bitcoin, enabling consistent display and trading of NFT assets across wallets.
• BRC-69: Related to recursive inscriptions, it describes complex resources or composite content more efficiently, allowing developers to express richer materials and relationships on-chain.

These proposals are community conventions rather than official protocols. Their adoption depends on support and consistency from wallets, marketplaces, and indexers.

How Do You Use BRC-20? What Are the Steps for BRC Interaction?

For basic interactions with BRC assets, follow these steps:

1. Choose a Wallet Supporting Ordinals and BRC-20: Select a wallet capable of displaying inscriptions and compatible with mainstream indexers. After creating your wallet, securely back up your seed phrase.
2. Prepare Bitcoin for Fees: All operations occur on the BTC blockchain; both transfers and minting require miner (transaction) fees.
3. Verify Token Information Sources: Use BRC-20 compatible explorers or indexers to check token contract codes, total supply, and minting rules to avoid confusion or counterfeit entries.
4. Perform On-Chain Operations: Follow wallet prompts to “mint” or “transfer,” then wait for block confirmations. You can check transaction and inscription status via explorers.
5. Connect to Trading or Custody Services: For trading, use marketplaces or exchanges supporting BRC-20 (e.g., Gate’s spot market for ORDI). For on-chain withdrawals, ensure you use a BTC address compatible with Ordinals inscriptions and confirm that exchange and wallet inscription formats match.

Where Is BRC Being Adopted? How Is BRC Used in Trading and NFTs?

BRC adoption focuses primarily on fungible tokens and Bitcoin-native NFTs.

• Trading: Representative assets like ORDI (BRC-20) have gained mainstream platform support. For instance, at Gate you can trade ORDI in spot markets, fulfilling price discovery and liquidity needs. For on-chain withdrawals, confirm that your target address supports inscription display and indexing.
• NFTs: Wallets and marketplaces that adhere to conventions such as BRC-721 can consistently recognize NFT metadata for the same artwork. This minimizes errors during viewing, transferring, or trading digital art, game items, or collectible cards on Bitcoin.

What Are the Risks of BRC? What Should You Consider Regarding Fees and Security?

There are three main categories of risk associated with BRC:

1. Consistency Risk: Different indexers may use varying versions, resulting in discrepancies when calculating balances for the same address. To minimize display inconsistencies, choose mainstream indexers and monitor version updates.
2. Fee & Congestion Risk: Minting or trading BRC-20 tokens during peak periods can cause higher transaction fees. From mempool observations (2023–2024), inscription activities have led to mempool congestion and sharp fee increases. Set appropriate miner fees, avoid peak times, and keep sufficient BTC for fee buffers. (Source: mempool.space, observation period until H2 2024)
3. Asset Identification & Counterfeit Risk: Malicious actors may use similar contract codes or incomplete metadata to mislead users. Always verify token information through authoritative explorers or official exchange pages to avoid confusing similar names with different rules.

Additionally, pay attention to address compatibility and backup security. Mistyped addresses, lost seed phrases, or leaked private keys can result in irreversible loss.

What Is the Future of BRC? How Does It Relate to Runes?

Looking ahead, BRC will continue serving as an “application-layer convention.” Once wallets and marketplaces align on standards, users enjoy smoother experiences while developers iterate more rapidly. The community is also working on optimizing data formats and indexing rules to reduce congestion and misinterpretation.

The relationship with Runes is noteworthy. Introduced in 2024, Runes encode fungible tokens using Bitcoin’s UTXO model to minimize reliance on external indexers—aiming for a more “native on-chain” approach. While BRC focuses on inscriptions and conventions, Runes provide a scalable solution for clear bookkeeping. Both may coexist for different use cases: BRC offers flexible expression for inscription-based assets; Runes deliver clarity for scalable accounting. Wallets and exchanges may support both options in the future, letting users choose based on their needs and fee preferences.

Overall, BRC accelerates application-layer innovation on Bitcoin. By understanding its “non-intrusive standardization” role, mastering wallet-indexer collaboration, factoring in platform support and risk controls, you can confidently utilize tokens and NFTs within the Bitcoin ecosystem.

FAQ

How Are BRC Proposals Created? Why Are They Needed?

BRC proposals are community-driven solutions designed to address functional limitations of the Bitcoin network. As Bitcoin’s scripting capabilities are limited and complex applications are challenging natively, BRC enables developers to build NFT, token, and other ecosystem apps by inscribing data directly onto the blockchain. This evolution transforms Bitcoin from a simple payment tool into a programmable platform.

Do You Need Special Wallets or Tools to Participate in the BRC Ecosystem?

Yes—interacting with BRC assets requires specialized wallets that support Ordinals inscriptions. Common options include Unisat, OKX Wallet, Gate Wallet, among others; these feature built-in management and trading for BRC-20 tokens. Unlike standard Bitcoin wallets, they can recognize and process data inscribed onto UTXOs so users can intuitively view and interact with BRC assets.

Why Are Gas Fees So High in the BRC Ecosystem?

High fees stem from two factors: first, each inscription occupies block space on the Bitcoin network; when network congestion occurs, fees spike sharply. Second, actions like minting or transferring assets (e.g., BRC-20 tokens) require multiple on-chain interactions—each incurring a fee. Operating during network off-peak periods (such as weekends) can significantly reduce costs.

How Is Voting Power Distributed for BRC Proposals? Can Ordinary Users Participate?

BRC proposals follow a community consensus model—mainly discussed and decided by Bitcoin developers, miners, and ecosystem participants rather than traditional voting mechanisms. Ordinary users lack direct voting rights but can influence outcomes indirectly by running full nodes, joining community discussions, or providing feedback in forums. Final adoption depends on developer acceptance and miner support.

How Does BRC Differ from Bitcoin Layer 2 Solutions (Such as Lightning)?

BRC and Layer 2 represent distinct expansion paths: BRC extends functionality by inscribing data directly onto the main chain—offering full on-chain verifiability and security but with higher transaction costs. Layer 2 solutions like Lightning are off-chain payment networks featuring rapid transactions with low fees but requiring trust in intermediaries. BRC suits NFT/token applications; Layer 2 excels in high-frequency payments.