SRC-20 Tokens

What Are SRC-20 Tokens?

How Do SRC-20 Tokens Work?

BRC-20 vs. SRC-20

While both BRC-20 and SRC-20 token standards increase the utility of the Bitcoin blockchain, they rely on different methods. Let’s take a look at the key differences between BRC-20 and SRC-20.

Data storage

SRC-20 tokens utilize the Bitcoin Stamps protocol, allowing information storage directly on UTXOs on the Bitcoin blockchain. In contrast, BRC-20 tokens use the Bitcoin Ordinals protocol, which stores information in the witness data. While details in the witness data can be modified by a syncing mode, Bitcoin Stamps data can’t be pruned.

Data pruning

SRC-20 token data stored on UTXOs can’t be pruned, ensuring immutability and permanence. On the other hand, data attached to Bitcoin ordinals can be pruned by nodes, potentially affecting data longevity.

Transaction costs

​​SRC-20 tokens offer flexible data storage, letting creators attach data of arbitrary sizes. However, larger data sizes result in higher transaction fees. BRC-20 tokens impose restrictions on information size, ensuring standard transaction costs. Additionally, BRC-20 token data is stored in the Witness section of a transaction. That contributes to cheaper transaction costs.

Adoption

BRC-20 tokens have experienced wider adoption, being listed on centralized exchanges, and multiple protocols are developing technologies to embrace them. In contrast, SRC-20 tokens are still in their early stages, with limited wallet and protocol integration.

Conclusion

SRC-20 tokens expand the utility of the Bitcoin blockchain, enabling the creation of fungible assets through the Bitcoin Stamps technology. While having many similarities with the BRC-20 token standard, the SRC-20 standard uses a different method of data storage on the Bitcoin blockchain.