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ORC-20 vs. BRC-20: Unraveling Token Standards on the Bitcoin Blockchain
How ORC-20 Expands on BRC-20 With UTXO-Based Transfers and Greater Flexibility
TL;DR
- ORC-20 is an experimental token standard designed to address some limitations of BRC-20 on the Bitcoin network.
- It uses Bitcoin's UTXO model and adds features for deploying, minting, sending, canceling and upgrading tokens.
- ORC-20 supports more flexible token parameters and migration from BRC-20.
- BRC-20 had significantly more activity at the time, with more than 5.62 million transactions by May 15.
- Both standards rely on Bitcoin Ordinals but remain different from traditional smart-contract token systems such as Ethereum's ERC-20.
BRC-20 introduced fungible tokens to Bitcoin through the Ordinals protocol. ORC-20 later emerged as an experimental alternative designed to expand functionality and address some of BRC-20's limitations.
Both standards operate on the Bitcoin blockchain, but their transaction models and capabilities differ.
What Is ORC-20?
ORC-20 is an open token standard built around Bitcoin Ordinals.
It was designed to maintain compatibility with BRC-20 concepts while adding greater flexibility around token supply, transactions and data formats.
One of its main differences is its use of Bitcoin's Unspent Transaction Output, or UTXO, model.
Under ORC-20's design, token transfers use transaction states that invalidate previously spent balances. The system is intended to reduce double-spending risks associated with how token balances are tracked.
ORC-20 also introduces a nonce and transaction-cancellation mechanism.
ORC-20 vs. BRC-20
Both standards allow fungible tokens to operate through Bitcoin Ordinals, but ORC-20 adds several features.
ORC-20's additional flexibility can benefit developers, but it also adds complexity.
What Can ORC-20 Tokens Do?
ORC-20 uses several types of events to manage tokens.
- Deploy: Creates a new ORC-20 token and defines its parameters.
- Mint: Issues new tokens within the configured supply rules.
- Send: Transfers tokens between addresses.
- Cancel: Cancels certain incomplete transaction states.
- Upgrade: Changes parameters such as supply or maximum mint values.
The upgrade feature is a notable difference from BRC-20, where token parameters are more restrictive after deployment.
ORC-20 also allows existing BRC-20 tokens to migrate to the ORC-20 framework.
Why Was ORC-20 Created?
BRC-20 demonstrated that fungible tokens could be created using Bitcoin Ordinals, but its intentionally simple design created limitations.
ORC-20 aimed to improve:
Transaction handling: The UTXO-based model provides more explicit tracking of token transfers.
Flexibility: Developers can use broader data formats and modify certain token parameters.
Token migration: Existing BRC-20 projects can move into the ORC-20 system.
Transaction control: Nonces and cancellation events provide additional tools for managing transfers.
However, those added features also make ORC-20 more complicated than BRC-20.
ORC-20 Activity Reaches 180,064 Transactions
Early usage showed growing interest in the experimental standard.
As of May 15, Dune Analytics had recorded 180,064 ORC-20 transactions, generating about 14.68 BTC in fees.
Activity peaked on May 13 with approximately 72,200 transactions.
Around 70,000 were related to ORC-20 Inscription minting, generating about 5.8 BTC in fees.
Tokens and inscriptions included categories such as PUNK, PEPE and MEME.
BRC-20 remained considerably larger.
Approximately 265,000 BRC-20 transactions occurred on May 13. By May 15, cumulative BRC-20 activity had exceeded 5.62 million transactions, with network participants paying about 1,074 BTC in fees.
What Are the Risks of ORC-20?
ORC-20 was still experimental, making its long-term adoption uncertain.
Potential considerations include:
- Greater technical complexity
- Limited infrastructure and tooling
- Uncertain token liquidity
- Experimental implementation
- No guarantee that ORC-20 tokens will retain value or utility
The standard's additional functionality does not automatically make it safer or more successful than BRC-20.
Which Bitcoin Token Standard Is Better?
ORC-20 and BRC-20 were designed with different priorities.
BRC-20 offers a simpler framework and had substantially greater adoption at the time. ORC-20 attempts to provide more flexible token management, UTXO-based transaction handling and upgrade capabilities.
For developers, the choice depends on whether those additional functions justify the added complexity.
The growth of both standards nevertheless highlighted a broader change in Bitcoin's ecosystem: Ordinals expanded Bitcoin beyond BTC transfers by creating new ways to issue tokens and other digital assets directly on the network.
