As Bitcoin sets another high record, the team behind the world’s largest crypto asset, has teamed up to draft the standard rules for the BRC-20 token. The decision to revisit the governance of BRC-20 stemmed from the growing demand for Bitcoin Ordinals.
The demand for Bitcoin Ordinal took the crypto market by storm for the past few years as investors demonstrated their willingness to acquire digital assets inscribed to Satoshi.
Developers Unveil New Guidelines for BRC-20
The surge in demand for Bitcoin Ordinals forced the developers to form a coalition Layer 1 Foundation that will collectively promote the development the use case of BRC-20.
In a March 11 publication, the team of Bitcoin developers announced the new governance body of the Layer 1 Foundation. The primary objective of this coalition is to restore trust and transparency within the Bitcoin ecosystem.
With the new governance, the developers remain optimistic about the future growth of the BRC-20 token. An announcement by the vice president at Layer 1 Foundation Isabel Foxen Duke demonstrated that BRC-20 indexers are invited to partner with the new governance.
The executive outlined that to become BRC-20 indexers; the investors must operate within the new standard procedures and resolutions. Duke unveiled new operating principles for BRC-20 governance.
Besides implementing the new BRC-20 governance, Duke recognized the exemplary work of the members of the Layer 1 Foundation. This coalition comprises several tech and crypto industrial leaders, including Alex Labs, Hiro, Allium Labs, UTXO Management, and Oyl Dynamics.
To support the implementation of the new rules, the Layer 1 Foundation tasked the renowned Bitcoin Wallet creator Unisat and the American-based Ordinals aggregators Best in Slot with roles to maintain the BRC-20 protocol.
Overview of BRC-20 Standard Rules
The other coalition members were tasked with role of improving the simplicity of technical architecture, which is regarded as the first safety approach for adjusting the BRC-20 protocol and indexers.
The Layer 1 Foundation usually consults the community to attain the desired results when changing the BRC-20 protocol. The involvement of the community aims to foster mutual benefits and maintain the BRC-20 protocol as an open source. The report demonstrated that the coalition vowed to support the new framework for the BRC-20 protocol fully.
The coalition anticipates that the new Layer 1 Foundation framework will address the technical issues affecting the BRC-20 protocol, including the risks of hard forks. According to the report, the hard fork consists of a series of changes on the blockchain that are not backward compatible. Any changes on the hard fork force the members of the BRC-20 to upgrade their software.
Recent Development on BRC-20 Protocol
At the beginning of this year, the BRC-20 community engaged in intense discussions about whether it was essential to implement the Jubilee updates on the Bitcoin Ordinals. The proposed BRC-20 update ignited heated debates among the Layer 1 Foundation.
In response, the creator of BRC-20 Domo argued that the Jubilee update to Bitcoin Ordinals will interfere with how the tokens are indexed. He advised the BRC-20 team to consider testing the Jubilee software before commanding the update.
Without conducting various tests on Jubilee, Domo feared that the update would threaten the entire BRC-20 protocol. He described the Jubilee update as reckless and harmful to the protocol.
In a separate report, the founder of Unisat Wallet, Lorenzo, argued that hard forking the BRC-20 protocol was not the possible solution. Lorenzo recognized the remarkable work done by the Layer 1 Foundation in improving the protocol.
Responding to Lorenzo, the Foxen Duke argued that the primary goal of the ongoing development of the BRC-20 was to safeguard the protocol users. The official explained that to bring prosperity to the BRC-20 protocol, it was important for the community to contribute actively.
The unveiling of the new guidelines for BRC-20 came at a time when BTC established a strong rally that broke the $70K barrier. According to CoinMarketCap, Bitcoin is trading at $73,400, a 1.9% surge in the last 24 hours.
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