ORC-20 Token Meaning

An open standard for tokens on the Bitcoin network, built as an enhancement to the popular BRC-20 standard. While BRC-20 tokens are relatively static and immutable once minted, ORC-20 introduces more flexibility, allowing creators to change the supply or update the token's parameters even after deployment.

It uses the JSON format inscribed onto satoshis (via Ordinals) to define token properties. The primary goal of ORC-20 is to address the limitations of BRC-20, specifically regarding security and double-spending risks.

It includes a transaction model that is backward compatible with BRC-20 but adds support for canceling transactions and migrating tokens. This makes it more akin to the ERC-20 standard on Ethereum in terms of utility for developers.

However, like all experimental Bitcoin token standards, ORC-20 is controversial. Critics argue that it bloats the Bitcoin blockchain with non-monetary data, driving up fees for regular users.

Proponents argue it brings necessary utility and innovation to the world's most secure blockchain, potentially unlocking a new DeFi ecosystem on Bitcoin.