What Is the SRC-20 Standard: Empowering Innovation in the Bitcoin Token Ecosystem

The SRC-20 standard stands out as one of the most notable breakthroughs in digital assets in recent years. It brings new possibilities to digital art and tokenization on the Bitcoin network. By combining innovation and tradition, SRC-20 expands Bitcoin’s potential far beyond its traditional role as a store of value.

What Is the SRC-20 Standard and How Does It Impact Bitcoin?

SRC-20 is a framework designed for creating and managing tokens on the Bitcoin blockchain, specifically known as Bitcoin Stamps. This standard enables data to be embedded directly within Bitcoin transactions, making it possible to create unique digital collectibles that are permanently recorded on the blockchain.

SRC-20 utilizes unspent transaction outputs (UTXOs) for data storage, rather than witness data. This approach dramatically enhances Bitcoin’s functionality, evolving it from a simple digital currency into a multi-purpose platform.

What Are Bitcoin Stamps?

Bitcoin Stamps, also referred to as SRC-20 tokens, are a form of non-fungible token (NFT) built on the Bitcoin network. These tokens employ the STAMPS protocol (Secure Tradeable Art Maintained Securely) to embed data—such as digital artwork—directly into Bitcoin transactions.

Bitcoin Stamps are distinguished by their ability to encrypt image data and store it within the transaction descriptor key, ensuring immutability and a permanent presence on the blockchain.

Bitcoin Stamps vs. Bitcoin Ordinals: Protocol Comparison

Although both protocols focus on embedding data within the blockchain, they differ in several important ways:

1. Technical Implementation: Bitcoin Stamps integrate directly with the UTXO set, while Ordinals inscribe data onto individual satoshis.

2. Permanence and Security: Bitcoin Stamps are inherently immutable, whereas Ordinals data can be pruned.

3. Blockchain Efficiency: Bitcoin Stamps are designed to use minimal space, while Ordinals may contribute to blockchain size inflation.

What Are the Technical Specifications for SRC-20 Tokens?

SRC-20 tokens are defined by several precise technical specifications:

1. Images are limited to a maximum of 24×24 pixels.
2. All data must be encoded in base64 format.
3. Each Bitcoin Stamp requires a unique identifier.
4. Tokens are created by including “stamp:base64” in a new transaction.

Conclusion

The SRC-20 standard represents a pivotal development in digital assets, merging innovation and legacy within the Bitcoin ecosystem. By broadening Bitcoin’s functionality and introducing permanent digital collectibles, SRC-20 paves the way for new blockchain applications. As the technology advances, expect continued innovation to redefine the future of digital currencies and blockchain-based assets.

FAQ

What Is Bitcoin and How Can You Earn It?

Bitcoin is a digital cryptocurrency. You can earn it by purchasing, trading, or mining with high-performance hardware. It offers an alternative payment option to traditional currencies.

What Is Bitcoin and Is It Permissible?

Bitcoin is a decentralized digital currency. Scholars differ on its permissibility: some consider it lawful, while others view it as prohibited due to its similarity to gambling. The ruling depends on specific jurisprudential perspectives.

What Is the Concept of Bitcoin?

Bitcoin is the first decentralized digital currency, powered by blockchain technology. It enables direct peer-to-peer transactions without intermediaries and operates independently of any central authority.