TLDR;
- The BRC-20 token standard, created using the Ordinals and Inscriptions protocol, has unleashed the potential of new BTC-based tokens.
- It can only be deployed on a native Bitcoin browser extension or wallet such as UniSat.
- Minting BRC-20 tokens require high gas fees.
- Users interested in exploring the BRC-20 ecosystem can follow the steps outlined in this article and read BSC News’ BRC-20 explainer to learn more about the unique token standard.
How to Set up UniSat Wallet for BRC-20 Tokens
With the introduction of the BRC-20 token standard, Bitcoin is now more than a store of value. The innovation, created by the arrival of Ordinals on the Bitcoin Network, has unleashed the potential of new BTC-based tokens. Already, developers have started deploying tokens on the network, and you can trade them easily.
Since Bitcoin is not EVM-compatible, BRC-20 tokens can only be deployed on a native Bitcoin browser extension or wallet. An example of such a wallet is UniSat, the first open-source browser extension wallet for Bitcoin Non-Fungible Tokens (NFT). Through Ordinals’ innovation, users can now store BRC-20 tokens alongside NFTs in the wallet.
Here is how to set up your UniSat wallet to start storing, trading, and minting your BRC-20 tokens:
- Open the UniSat website by visiting Unisat.io and download the Chrome extension OR wallet.
- Open the wallet and select the option to create a new wallet.
- You will be prompted to create a strong password to proceed. Ensure that you use a strong password that you can remember.
- After confirming the password, UniSat will create a 12-word recovery phrase. Note the phrase and keep it safe, as it would be required for wallet recovery.
- The next prompt will be to select a network. Choose the Taproot Network to proceed. Taproot is compatible with BRC-20 tokens.
- You can now interact with BRC-20 tokens on your UniSat wallet.
Minting BRC-20 Tokens on UniSat
Now that you have set up your UniSat wallet to interact with the Bitcoin token standard, you can now mint supported tokens with the following steps:
- Open the UniSat website and navigate to the BRC-20 section. You can click the search icon and select BRC-20 to view a list of distributed Bitcoin-based tokens.
- Select a token whose distribution is ongoing and participate in the minting process.
- Choose the number of times you want to mint the token. Minting once will ensure that you receive a specific number of tokens. Likewise, minting five times would give you five times the specific tokens.
- Input the amount of gas fees. It is important to note that higher gas fees will lead to faster transactions.
- Minting is complete.
Since users can input gas fees based on their preferences, transactions can be front-run. This occurs when another user increases their gas fees to overtake your transaction. Also, if the token is 100% distributed before you complete minting, you will lose the token alongside your gas fees.
Regarding gas fees, the Bitcoin network has recorded massive gas consumption within a few months. According to Cryptofees.info, the network has recorded over $8 billion in the last seven days and is the second network with the highest gas fee consumption, behind Ethereum.
Therefore, users interested in minting BRC-20 tokens on UniSat should expect high transaction fees. In the meantime, users can now explore the BRC-20 ecosystem by following the steps outlined in this article.
