Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Solana (SOL) strives higher with strong copper support, next stop $ 200?

2025-05-22

BNB meeting to all time becomes strong, but this crucial zone has to hold

2025-05-22

Lawyers for Tornado -Contant developer say that federal prosecutors have withheld critical evidence from the court

2025-05-22
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    World3 Powers AI-driven Governance on-Chain with Quack AI

    2025-05-22

    Validation Cloud implements AI -Engine on Hedera

    2025-05-22

    Sony announces the Mavet launch of Soneium Blockchain

    2025-05-21

    Nitro Labs launches data anchor to lower the storage costs of Solana

    2025-05-21

    Zimbabwe rolls out blockchain-based carbon credit market system

    2025-05-21
  • NFT

    FIFA starts Avalanche L1 to Power Soccer NFT Collectibles Platform

    2025-05-22

    Guild of Guardians leads with a huge volume of $ 796.62k

    2025-05-20

    Solana Meme Coin Ponke Set to release assembly objects, clothing via Jcorp Spinout

    2025-05-19

    The most popular collections of the moment on blockchain

    2025-05-18

    Raoul Pal sees NFT market exploding when Ethereum Bull Cycle is approaching

    2025-05-17
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Solana (SOL) strives higher with strong copper support, next stop $ 200?

    2025-05-22

    Bitcoin price reaches new all time above $ 111,000

    2025-05-22

    Analyst predicts huge Bitcoin outburst based on one gold graph, sees the Altcoin market following

    2025-05-22

    Bitcoin price rays to New All Time Bulls takes the lead

    2025-05-22

    Mike Novogratz says that weakening dollars, broadening the shortage and the deteriorating financial situation of America ‘very good’ for Bitcoin and Crypto

    2025-05-21
  • Learn

    What Is a DEX (Decentralized Exchange)?

    2025-05-21

    Blockchain Explained: What It Is, How It Works and Why We Need It

    2025-05-21

    Types of Blockchain Layers Explained: Layer 0, Layer 1, Layer 2 and Layer 3

    2025-05-16

    Token vs. Coin: Key Differences You Must Know as a Beginner

    2025-05-15

    Inside Changelly: 10 years of steadfast support and compliance

    2025-05-15
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Blockchain»What is an ARC-20 token?
Blockchain

What is an ARC-20 token?

2024-02-10No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

ARC-20 is a token standard that allows the creation of fungible tokens that can be held and transferred on the Bitcoin blockchain. ARC-20 standard tokens are issued using the Atomicals protocol. In the ARC-20 standard, tokens are represented by satoshisthe original unit of the Bitcoin blockchain (1 BTC consists of 100 million satoshis).

ARC-20 is a fungible token standard for Bitcoin

The concept of fungible tokens was popularized in the cryptocurrency space by Ethereum, where they are typically issued using the ERC-20 standard. Certain ERC-20 tokens have reached massive market capitalizations – some of the largest fungible tokens on the market today include UNI, SHIB, LDO and of course stablecoins.

The ability to create fungible tokens is available on virtually every blockchain platform with general purpose smart contracts. For example, there are fungible tokens on Solana (SLP tokens), BNB Chain (BEP-20 tokens), Cardano (native tokens), and so on.

Although Bitcoin’s smart contract capabilities are much more limited, developers have come up with creative ways to represent different types of digital assets (fungible and non-fungible tokens) on the Bitcoin blockchain.

The ARC-20 token standard is powered by the Atomicals Protocol, a way to create both fungible and non-fungible tokens on Bitcoin. The Atomicals team calls the digital assets that can be created through the protocol “digital objects.”

Minting ARC-20 tokens

Anyone can create an ARC-20 token and control its offering, ticker and metadata (e.g. official website, social media links and an image). However, because each ARC-20 token is represented by 1 satoshi, there is actually a practical limit to the number of ARC-20 tokens someone can mint.

See also  Bitlayer unleashes powerful monad -integration with BitVM Bridge

This differs from the ERC-20 standard, for example, where you can make the supply of a token as large as you want, at no additional cost, as you create it. For example, many meme coins issued on blockchains like Ethereum have a supply of hundreds of trillions of tokens.

The process of creating ARC-20 tokens and its implications for token supply are perhaps the most unique aspect of ARC-20 tokens compared to other fungible token standards in use today, so let’s break it down in a bit more detail to explain.

Decentralized ARC-20 token coining

The decentralized ARC-20 token coin mode allows the token creator to specify how many mints of the token are allowed, and how many tokens are issued in one coin. This in itself does not create tokens, but users who want the token can mint them.

Instant ARC-20 token coining

In instant coin mode, the user who creates the ARC-20 token creates an output that contains the total supply of the token. For example, if you want to create a token with a supply of 10 million using instant mint mode, you need to create an output of 10 million satoshis (0.1 BTC). The more tokens you want to earn, the more BTC you have to supply.

How do I use ARC-20 tokens?

To hold and transact with ARC-20 tokens, you will need a Bitcoin wallet that supports UTXO selection, also known as “coin checking.” Here are a few examples of such wallets:

  • Sparrow
  • Electricity
  • Mycelium
  • Blue wallet
  • Ledger Live

ARC-20 vs BRC-20 – Atomicals and Ordinal Numbers Compared

ARC-20 tokens perform a similar function to BRC-20 tokens, which are also fungible tokens on the Bitcoin network, except they are issued via the Ordinals protocol.

See also  New decentralized gaming -token skyrockets after binance list

Although Atomicals and Ordinals offer very similar utility, the two protocols differ in some areas. Notably, Ordinals should be used with Taproot addresses for all use cases. Atomicals require the use of Taproot addresses for creating and updating assets, but not for transferring them.

Fungible tokens are not supported in the base Ordinals protocol, while Atomicals implements them as the top-tier ARC-20 standard. The Atomicals protocol also supports two different types of fungible tokens.

Another difference is that Ordinals does not have a name service in the base protocol. Meanwhile, Atomicals has a naming service implemented through premium NFTs called Realms.

In summary, the Atomicals protocol offers a broader set of features than Ordinals, but the Ordinals protocol has seen more adoption so far. To be fair, the Ordinals protocol has benefited from a head start as it was launched in January 2023, while the Atomicals protocol was released in September 2023.

At the moment, the Ordinals protocol is a lot more popular than the Atomicals protocol, although Atomicals has gained some traction. In total, the Atomicals protocol transactions generated approximately 274 BTC in fees, while the Ordinals protocol transactions generated 4,050 BTC in fees.

If you’d like to see a comparison between Ordinals and Atomicals based on on-chain activity, you can check out this handy Dune Analytics dashboard that compares the two protocols.

it comes down to

ARC-20 tokens are fungible tokens issued on the Bitcoin blockchain using the Atomicals Protocol. When ARC-20 tokens are minted, each token is represented by a satoshi, the smallest unit of BTC.

See also  Creditcoin and Plume Unite to Revolutionize Real Asset Markets on the Blockchain

In terms of functionality, ARC-20 tokens are quite similar to BRC-20 tokens, which are issued using the Ordinals protocol. Currently, the Ordinals protocol is more popular than the Atomicals protocol, but the Atomicals protocol offers some additional features that could help it gain more acceptance.

If you want to learn more about Bitcoin, check out our article explaining how Bitcoin wallet addresses work.

Source link

ARC20 Token
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

World3 Powers AI-driven Governance on-Chain with Quack AI

2025-05-22

Validation Cloud implements AI -Engine on Hedera

2025-05-22

Sony announces the Mavet launch of Soneium Blockchain

2025-05-21

Nitro Labs launches data anchor to lower the storage costs of Solana

2025-05-21
Add A Comment

Comments are closed.

Top Posts

CFTC Commissioner Says Majority of Tips in Whistleblower Program Involve Crypto

2023-11-02

Congress weighs the stablecoin and rejects CBDC over range

2025-03-11

Is Ethereum Undervalued? Investors are holding firm as price targets rise

2024-11-20
Editors Picks

How to legitimize meme coins

2024-01-24

US senators write a letter to Jerome Powell, calling on the Fed chairman to cut interest rates

2024-06-12

Toncoin: 240k tons moved to exchanges – should traders be worried?

2025-01-30

‘I expect enormous benefits from this market innovation’: new SEC chairman signals crypto -policy shift in new speech

2025-04-26
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Solana (SOL) strives higher with strong copper support, next stop $ 200?

BNB meeting to all time becomes strong, but this crucial zone has to hold

Lawyers for Tornado -Contant developer say that federal prosecutors have withheld critical evidence from the court

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$110,726.443.01%
  • ethereumEthereum(ETH)$2,650.193.93%
  • tetherTether USDt(USDT)$1.00-0.05%
  • rippleXRP(XRP)$2.422.06%
  • binancecoinBNB(BNB)$685.804.56%
  • solanaSolana(SOL)$177.874.89%
  • usd-coinUSDC(USDC)$1.00-0.03%
  • dogecoinDogecoin(DOGE)$0.2404065.16%
  • cardanoCardano(ADA)$0.805.72%
  • tronTRON(TRX)$0.2769172.11%
  • suiSui(SUI)$3.81-2.94%
  • chainlinkChainlink(LINK)$16.604.75%
  • avalanche-2Avalanche(AVAX)$25.1710.45%
  • hyperliquidHyperliquid(HYPE)$31.1917.18%
  • stellarStellar(XLM)$0.2997562.89%
  • shiba-inuShiba Inu(SHIB)$0.0000154.15%
  • hedera-hashgraphHedera(HBAR)$0.2024662.97%
  • bitcoin-cashBitcoin Cash(BCH)$430.306.82%
  • unus-sed-leoUNUS SED LEO(LEO)$8.850.30%
  • the-open-networkToncoin(TON)$3.183.29%
  • polkadotPolkadot(DOT)$4.893.60%
  • moneroMonero(XMR)$405.9912.44%
  • litecoinLitecoin(LTC)$98.453.03%
  • pepePepe(PEPE)$0.0000154.11%
  • bitget-tokenBitget Token(BGB)$5.210.94%
  • piPi(PI)$0.81-0.31%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.00-0.04%
  • bittensorBittensor(TAO)$472.4213.18%
  • uniswapUniswap(UNI)$6.412.83%
  • aaveAave(AAVE)$255.780.68%
  • nearNEAR Protocol(NEAR)$3.006.52%
  • aptosAptos(APT)$5.475.26%
  • ondo-financeOndo(ONDO)$1.015.47%
  • okbOKB(OKB)$52.731.23%
  • kaspaKaspa(KAS)$0.1189666.52%
  • official-trumpOFFICIAL TRUMP(TRUMP)$15.445.77%
  • ethereum-classicEthereum Classic(ETC)$19.544.70%
  • internet-computerInternet Computer(ICP)$5.544.83%
  • gatechain-tokenGateToken(GT)$21.730.80%
  • crypto-com-chainCronos(CRO)$0.1002313.79%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2486596.74%
  • vechainVeChain(VET)$0.0300955.27%
  • render-tokenRender(RENDER)$4.996.31%
  • mantleMantle(MNT)$0.751.94%
  • ethenaEthena(ENA)$0.4054882.10%
  • usd1World Liberty Financial USD(USD1)$1.000.00%
  • arbitrumArbitrum(ARB)$0.4257926.44%
  • algorandAlgorand(ALGO)$0.2386885.34%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.858.57%
  • bitcoinBitcoin(BTC)$110,726.443.01%
  • ethereumEthereum(ETH)$2,650.193.93%
  • tetherTether USDt(USDT)$1.00-0.05%
  • rippleXRP(XRP)$2.422.06%
  • binancecoinBNB(BNB)$685.804.56%
  • solanaSolana(SOL)$177.874.89%
  • usd-coinUSDC(USDC)$1.00-0.03%
  • dogecoinDogecoin(DOGE)$0.2404065.16%
  • cardanoCardano(ADA)$0.805.72%
  • tronTRON(TRX)$0.2769172.11%
  • suiSui(SUI)$3.81-2.94%
  • chainlinkChainlink(LINK)$16.604.75%
  • avalanche-2Avalanche(AVAX)$25.1710.45%
  • hyperliquidHyperliquid(HYPE)$31.1917.18%
  • stellarStellar(XLM)$0.2997562.89%
  • shiba-inuShiba Inu(SHIB)$0.0000154.15%
  • hedera-hashgraphHedera(HBAR)$0.2024662.97%
  • bitcoin-cashBitcoin Cash(BCH)$430.306.82%
  • unus-sed-leoUNUS SED LEO(LEO)$8.850.30%
  • the-open-networkToncoin(TON)$3.183.29%
  • polkadotPolkadot(DOT)$4.893.60%
  • moneroMonero(XMR)$405.9912.44%
  • litecoinLitecoin(LTC)$98.453.03%
  • pepePepe(PEPE)$0.0000154.11%
  • bitget-tokenBitget Token(BGB)$5.210.94%
  • piPi(PI)$0.81-0.31%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.00-0.04%
  • bittensorBittensor(TAO)$472.4213.18%
  • uniswapUniswap(UNI)$6.412.83%
  • aaveAave(AAVE)$255.780.68%
  • nearNEAR Protocol(NEAR)$3.006.52%
  • aptosAptos(APT)$5.475.26%
  • ondo-financeOndo(ONDO)$1.015.47%
  • okbOKB(OKB)$52.731.23%
  • kaspaKaspa(KAS)$0.1189666.52%
  • official-trumpOFFICIAL TRUMP(TRUMP)$15.445.77%
  • ethereum-classicEthereum Classic(ETC)$19.544.70%
  • internet-computerInternet Computer(ICP)$5.544.83%
  • gatechain-tokenGateToken(GT)$21.730.80%
  • crypto-com-chainCronos(CRO)$0.1002313.79%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2486596.74%
  • vechainVeChain(VET)$0.0300955.27%
  • render-tokenRender(RENDER)$4.996.31%
  • mantleMantle(MNT)$0.751.94%
  • ethenaEthena(ENA)$0.4054882.10%
  • usd1World Liberty Financial USD(USD1)$1.000.00%
  • arbitrumArbitrum(ARB)$0.4257926.44%
  • algorandAlgorand(ALGO)$0.2386885.34%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.858.57%