What is ORC-20 And How Is ORC-20 Better Than BRC-20?

The blockchain market is getting crowded each day with new technology and the latest token standards have popped out to be one of the premium innovations of this world. While token standards like BRC-20 and DRC-20 have turned out to be the talk of the town, with their bucket full of benefits, as they are getting older in the market, the developers are pin-pointing their negatives. 

So, to cope with the flaws of BRC-20, the blockchain world has come up with one more innovation, the ORC-20 tokens. But what are these ORC-20 tokens? Let us find out.

What Is ORC-20?

These are a new sort of digital token created as an open standard for the Bitcoin network. They are an improved version of the BRC-20 token standard, tailored with the goal of overcoming constraints and introducing additional functionality for tokenization on the Bitcoin network. 

ORC-20 tokens are introduced with the aim to erase the flaws of BRC-20 by increasing flexibility, scalability, and security, and to prevent the risk of double spending. However, there is a catch, unlike BRC-20 which has turned out to be a developers’ favourite, ORC-20 is just at its experimental stage. Therefore, though the tokens created with ORC-20 hold immense promise, their values and utility are still under question. 

Read more: BRC 20 vs DRC 20: All You Need To Know 

What limitations of BRC-20 led to the development of ORC-20?

No doubt, BRC-20 is one of the most promising token standards that garnered the love of developers due to its incredible features. However, the current BRC-20 token standard has a bunch of inherent limitations rolled into it and these flaws sparked the development of ORC-20. 

Here are the major limitations of BRC-20 that served as a catalyst for the creation of ORC-20: 

• Anti-double-spending methods were insufficient: One of the major flaws of BRC-20 tokens is the lack of a powerful built-in mechanism to prevent double-spending, which involves the fraudulent act of spending the same token multiple times. This flaw ultimately came out to be a significant security risk, undermining confidence and dependability within the token ecosystem.
• Limitations in naming conventions: BRC-20 tokens bring limited choices of token naming, which resulted in a bunch of casual and non-descriptive names. While initially, this may be fine, in the long term lack of naming options ignited hindrance in effective token branding and identification.

ORC-20 vs BRC-20 vs DRC-20

ORC-20, BRC-20 tokens , and DRC-20 tokens are currently three trending token standards that have created a buzz in the blockchain space. Though all these standards have the same function and utility as they are used to create tokens, they are wrapped in a lot of differences. 

While BRC-20 is the oldest among them, the failures of BRC-20 led to the creation of both DRC-20 and ORC-20. DRC-20 token is created with the aim to bridge the loophole left by BRC-20 in terms of transaction speeds and fees. However, ORC-20 is created to address the drawbacks of BRC-20 like anti-double-spending methods, naming issues, security, scalability issues, and more. 

Some of the other difference between ORC-20, BRC-20 and DRC-20 are – 

Conclusion

Finally, the ORC-20 token standard emerged in reaction to the boundaries of the BRC-20 standard. Recognizing the need for advancement, the ORC-20 standard provides improved interoperability with the Bitcoin network. It has strong anti-double-spending mechanisms, decentralized minting procedures, extended naming standards, and customizable features. 

However, new flaws will definitely pop out owing to the newness of the token standards. This cycle will contribute to the growth of the overall blockchain world.