OKX has announced a partnership with Unisat, an open-source wallet for the Bitcoin token standard, to create a decentralized trading system for the BRC-20 token. The partnership aims to create a validation process for indexing BRC-20 on the Bitcoin blockchain, allowing Unisat Wallet to become OKX’s BRC-20 market data provider.
OKX and UniSat unite to revolutionize BRC-20 transaction indexing on the Bitcoin blockchain 💪
🤝 Together, we pave the way for decentralized indexing, and trustworthiness of BRC-20
🔍 Stay tuned!
#OKX #UniSat #BRC20 https://t.co/jZVq9hpny9— OKX Web3 (NFT & Wallet & DeFi) (@okxweb3) May 12, 2023
BRC-20 is an experimental token standard introduced in March 2023 by an anonymous developer called “Domo.” Unlike the Ethereum token standard ERC-20, BRC-20 does not have smart contract functionality. Its function is to inscribe specific data on Satoshi, the smallest unit of Bitcoin, to create a unique digital asset. However, BRC-20 has faced centralization issues as indexers rely on third parties like Unisat, which is subject to information censorship and manipulation and can also be a single point of failure for BRC-20.
Unisat Wallet provides a user-friendly interface for BRC-20 tokens and the functionality required for trading. One of its key features is indexing, which involves aggregating and keeping up-to-date information about BRC-20 tokens. Through indexing, Unisat Wallet ensures users have access to accurate, real-time data related to BRC-20 tokens, including token balances, transaction history, token transfers, deployments, and other relevant information.
The partnership between OKX and Unisat Wallet is the first step towards decentralized indexing, which will increase the overall strength and credibility of BRC-20. The expansion of BRC-20 has been remarkable, with over 5 million ordinals recorded on Bitcoin since the protocol launched earlier this year. The number of tokens issued under BRC-20 has reached 14,000 types, with a market capitalization of over $500 million.
However, ordinals have sparked controversy within some of the Bitcoin community. Bitcoin purists criticize ordinals for pushing up Bitcoin transaction fees and potentially damaging Bitcoin’s image as a reliable P2P payment network. Proponents of the protocol, meanwhile, argue that it could attract more people and expand use cases for the Bitcoin network.
Ordinals and BRC-20 tokens are made possible by the 2017 scaling proposal Segregated Witness (SegWit) and the Taproot upgrade in November 2021, which introduced smart contract functionality to Bitcoin, improved privacy features, and processing speed. These updates increase the amount of arbitrary data that can be stored within a blockchain block, making ordinals possible. Using this mechanism, ordinals users will be able to store data such as images and videos on the BTC blockchain via scripts.
The partnership between OKX and Unisat Wallet will likely have a significant impact on the future of BRC-20 and the Bitcoin network. By creating a decentralized trading system for BRC-20, users will have access to more accurate, real-time data, increasing the credibility and trust in the BRC-20 token standard. This partnership is a significant step towards a more decentralized and secure future for the cryptocurrency industry.
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