As more projects embrace the BRC-20 standard, innovation and new use cases are likely to emerge. The vast and diverse user base of the Bitcoin network, coupled with the attention of developers and investors, fosters the expansion and maturation of the BRC-20 token standard over time. However, BRC-20 tokens do not support smart contracts like ERC-20 tokens, limiting the potential for automation, transparency, security, and asset management. Furthermore, the BRC-20 standard currently has a smaller developer community compared to more established token standards, which may impact technological progress and the availability of resources and support.
Creating and transferring BRC-20 tokens require more space on the blockchain compared to peer-to-peer (P2P) transactions. This increased space consumption arises from the use of ordinal inscriptions, which require 4MB of blockchain space. The difference in transaction fees is influenced by the data storage method. Ordinal Bitcoin Inscriptions store all data directly on-chain, while traditional NFTs point to external sources of information for data storage.