BRC-20 is a new way to create and trade tokens on the Bitcoin network. It works like Ethereum's token standard (ERC-20), but for Bitcoin. Tokens are like digital assets that can represent things like virtual money or other digital items.
Before BRC-20, Bitcoin couldn't do some things that Ethereum could, like smart contracts and other cool features. But a recent upgrade called Taproot changed that. It allowed more data to be added to Bitcoin transactions.
BRC-20 tokens use this extra data to work. They have special codes written in a language called JavaScript Object Notation (JSON). These codes define how the tokens behave and what they can do.
With BRC-20, people can create their own tokens on the Bitcoin network. They can decide how many tokens to make and how to transfer them to other people. It's like making your own digital money and giving it to others.
BRC-20 is still being developed but it's an exciting step towards expanding what Bitcoin can do.
