SRC-20 Meaning

SRC-20 is a token standard on the Bitcoin blockchain that utilizes Bitcoin Stamps to create semi-fungible digital assets. While similar in purpose to the BRC-20 standard (which uses Ordinals), SRC-20 is technically distinct because it stores its data directly in the Bitcoin UTXO (Unspent Transaction Output) set, specifically within the multi-signature outputs, rather than in the Witness Data of a transaction.Storing data in the UTXO set is more expensive but also more Permanent than Ordinals.

Witness data (used by BRC-20) can theoretically be Pruned by some nodes to save space, but UTXO data must be stored by every full node for the network to remain functional. This makes SRC-20 tokens the most on-chain assets in existence, as the data is woven into the very fabric of Bitcoin's core state rather than just being an inscription on a specific satoshi.The SRC-20 standard has sparked a debate about Blockchain Bloat.

Because UTXOs are more resource-intensive for nodes to manage than witness data, some developers view the standard as Dusting the network with spam.

However, for collectors and developers who prioritize maximum permanence for their digital art or tokens, the higher cost of SRC-20 is a price worth paying to ensure their assets remain retrievable as long as a single Bitcoin node exists.