Introduction

Exploring Bitcoin has undoubtedly been a topic of interest. The introduction of BRC-20 tokens sparked a significant increase in Bitcoin network activities. It was until then, to overcome the challenges of BRC-20 another token set its foot in the market, the DRC-20 token.

As soon as these tokens were launched, they attracted a lot of attention. But there are some aspects that make DRC-20 different from BRC-20. What are these aspects? Let us find out.

What is BRC 20 ?

BRC-20 tokens were launched in March 2023 by a programmer with a feigned identity as Domo. The idea was to enable minting fungible tokens on Bitcoin a success. Ordi was the initial BRC-20 token to be launched.

In fact, after the launch of Ordi, several other BRC-20 tokens were introduced in the crypto market, with meme tokens forming the majority. The increase in demand for BRC-20 tokens led to an increase in the transaction costs of Bitcoin and substantial network congestion.
Furthermore, some BRC-20 tokens witnessed an exponential surge in their price and amassed market caps as of May 2023. 

BRC-20 tokens are based on the Bitcoin network and do not deploy smart contracts, thus affecting the overall functionality. 

The BRC-20 tokens utilize JavaScript Object Notation (JSON) data for ordinal inscriptions on satoshis to mint and transfer tokens, and deploy token contracts. Thus, a BRC-20 token can now be minted using the mint function, transferred using the transfer function and created using the deploy function.

However, the deployment, minting and transfer of BRC-20 tokens are not user-friendly due to the token’s infancy. Also, there are fewer support services and tools available. 

Also, the tokens have little utility and the ease of minting feature can act as a backstabber, thus degrading the worth of the tokens. 

The BRC-20 token is an experiment to enable fungibility on the Bitcoin blockchain. And therefore, there are possible chances of experimental failures. 

What is DRC 20?

The emergence of DRC-20 tokens has sparked a fire of revolution in the ever-expanding crypto atmosphere. The wave of DRC-20 is shaping the crypto shape as it establishes to be one of the most popular token standards, created exclusively for the Dogecoin blockchain platform. 

Like the other well-known token standards such as ERC-20, which is extensively used on the Ethereum blockchain, the DRC-20 tokens are also fungible and users can create, manage, or trade them.

The perk that is attracting a huge crowd towards DRC-20 tokens is their compatibility with the Dogecoin wallet which allows users to make and receive payments as well as interact with Dogecoin blockchain-based decentralized apps (dApps).

Although the DRC-20 token standard is still in its infancy, it has the potential to become a key component in the Dogecoin ecosystem. It enables developers to build a wide range of unique tokens that may be used to represent a wide range of assets, including digital commodities, services, and even votes.

Why are these ordinals entering crypto?

With the latest token standards popping out in the market, the prominence of ordinal protocols is getting solid. These protocols are now turned out to be incredibly important for the creation and management of tokens on the blockchain platforms. 

With the positives of ordinals getting the limelight, the developers are leaning more toward these protocols. As a result, the ordinals have become the standard behind the creation of popular tokens like BRC-20 and DRC-20.

Key differences: BRC 20 vs DRC 20

Both BRC-20 and DRC-20 token standards have ignited a buzz in the crypto world, showering their own sets of features. While both token standards have unlocked the doors to innovation, there are a bunch of differences that separate them. 

• Blockchain Platforms – While BRC-20 is currently an experimental token standard that enables users to mint and trade fungible tokens on the Bitcoin blockchain using the Ordinals protocol, DRC-20 operates on the Dogecoin blockchain. While the BRC-20 token standard is a comparatively new addition to the world of crypto, Dogecoin has been in the market for a considerable amount of time creating huge buzz due to the active support of the meme community and minimal transaction fees.
• Liquidity – In the crypto world, liquidity is a matter of concern for every investor. Every user craves high liquidity which enables them to buy or sell tokens at ease. The best part about BRC-20 tokens is they bring the boon of much higher liquidity in comparison to DRC-20 tokens.
• Smart Contracts deployment – DRC-20 tokens are designed to work with the smart contract platform, while BRC-20 tokens aren’t EVM-compatible and are unable to support smart contracts, limiting the ecosystem and adoption while providing top-tier security via Bitcoin’s PoW technique. On the other hand, DRC-20’s support of smart contracts enables transparency and high transaction speed. 
• Faster Transactions – DRC-20 offers faster transactions than BRC-20 as the block time of DRC-20 is just 3 seconds, while BRC-20 has a block time of nearly 15 seconds. 
• Security – DRC-20 is more secure than BRC-20. This is due to the fact that DRC-20 employs the Keccak-256 encryption algorithm, while BRC-20 uses the SHA-256 encryption algorithm. Keccak-256 is labeled to be more secure than SHA-256, making it more difficult to hack.

Which is better?

Both BRC-20 and DRC-20 have turned out to be the top choice of developers, allowing them a bucket full of decentralized apps and tokens. While BRC-20 is the older of the two standards, it is not as scalable and secure as DRC-20. On the other hand, DRC-20 seems to be a token standard created to address the limitations of BRC-20. 

Summing up, our vote goes to DRC-20, which is a slightly more advanced token standard than BRC-20. Its scalability, security, and interoperability make it a more appealing choice for developers interested in creating tokens on the Dogecoin network.

Conclusion

Finally, DRC-20 is one of the latest token standards on the Dogecoin Blockchain network that have started garnering the praises of developers for the perks it brings. Contrastingly, the developers who lean towards reliability and proven solutions, pick BRC-20. 

Overall, DRC-20 can prove to be a major catalyst for the Dogecoin ecosystem to skyrocket. These token standards could make Dogecoin a more tempting option for institutional investors as they are often more interested in secure, and scalable assets.