BRC-20 Token and Trac Protocol: A New Chapter in the Bitcoin Ecosystem

BRC-20 Tokens, as an experimental token standard, utilize the Ordinal protocol on the Bitcoin blockchain to create and send interchangeable tokens. The Ordinal protocol assigns a serial number to each Bitcoin's smallest unit, sat, giving it uniqueness. The protocol also supports Inscriptions(, allowing any content to be attached to a single sat, thus creating Bitcoin-native digital artworks.

BRC-20 Token does not require a smart contract or Ethereum Virtual Machine; it only needs a Bitcoin wallet to mint and trade. It uses JSON to define token attributes and functionalities, engraving them on sat, enabling peer-to-peer transfer and exchange on the Bitcoin network.

Recently, the market value and transaction frequency of BRC-20 Tokens have shown explosive growth, with trading volume once exceeding that of regular Bitcoin transactions on the Bitcoin blockchain. Most of these tokens are based on internet culture and memes, such as Pepe and Meme. This emerging token also brings additional transaction fee revenue to miners.

![Breaking! Bitcoin Decentralized Meta Protocol Tracker -- Trac officially launched!])https://img-cdn.gateio.im/webp-social/moments-08ca740e06d1e4533faea44271d0cc84.webp(

However, BRC-20 Tokens also face some challenges. Currently, BRC-20 does not adopt the UTXO model, and Ordinals are more like a note-taking system. This means that on-chain transaction information cannot be read directly; all data needs to be downloaded locally and organized to obtain the final balance. Although the accounting process is decentralized, the indexing is still centralized, which may pose potential risks.

To address these issues, the Trac protocol was born. Trac is a decentralized meta-protocol tracker based on the Bitcoin native chain, aimed at simplifying users' tracking and management of BRC-20 Tokens and Ordinal NFTs.

The core features of Trac include:

1. Real-time display of market information such as the issuance, circulation, holding addresses, and transaction records of BRC-20 Tokens and Ordinal NFTs.

2. Allow users to view and verify the content engraved on sat by entering the Ordinal serial number, including images, videos, and text.

3. Support quick sending and receiving of BRC-20 Tokens and Ordinal NFTs by scanning QR codes, enabling convenient peer-to-peer transactions.

4. Achieve automatic exchange, auction, and lending functions between BRC-20 Tokens and Ordinal NFTs through smart contracts, enhancing the liquidity and value of the tokens.

![Breaking! Bitcoin Decentralized Meta Protocol Tracker -- Trac Officially Launched!])https://img-cdn.gateio.im/webp-social/moments-ee281790c6545a25dbcf6fa02f471141.webp(

The Trac protocol effectively addresses many of the issues faced by BRC-20 Tokens through these features:

1. Reduced the cost of engraving data on the Bitcoin mainnet, only requiring the engraving of the serial number on sat instead of the entire JSON code.

2. Improved the scalability, functionality, performance, and user experience of BRC-20 Tokens, optimizing the infrastructure.

3. Established a mature wallet client, trading platform, and regulatory mechanism, providing users with a unified interface and protocol to ensure the security of Token management.

4. Give BRC-20 Tokens more value, support fast exchanges and appreciation between tokens, while allowing users to appreciate and identify digital artworks.

![Breaking! Bitcoin Decentralized Meta Protocol Tracker -- Trac is officially launched!])https://img-cdn.gateio.im/webp-social/moments-900ffec49d71ffe220f7484f2e62b364.webp(

![Breaking! Bitcoin Decentralized Meta Protocol Tracker -- Trac is officially launched!])https://img-cdn.gateio.im/webp-social/moments-b370d316d246b0e0c732fc6967e37a6b.webp(

![Breaking! Bitcoin Decentralized Meta Protocol Tracker -- Trac is officially launched!])https://img-cdn.gateio.im/webp-social/moments-041d7fcab041d8c878025979c6ac8f16.webp(

In summary, the Trac protocol brings new possibilities and innovations to the Bitcoin ecosystem, allowing users to enjoy more advanced decentralized applications. It not only addresses the existing issues of BRC-20 tokens but also provides a more convenient, secure, and efficient solution for token management and trading on the Bitcoin network.