Tuesday, April 16, 2024
HomeCryptocurrenciesBitcoinReduced Minting Costs: Luminex Launches Modified BRC-20 Token Standard

Reduced Minting Costs: Luminex Launches Modified BRC-20 Token Standard

In the world of Bitcoin Ordinals, Luminex has emerged as a prominent launchpad, and it has recently unveiled an enhanced version of the BRC-20 token standard. This modification claims to reduce minting costs by a staggering 90%.

As transaction fees continue to rise, Luminex aims to ensure the sustained growth of Ordinals on the network by lowering minting fees. The company has introduced the new BRC-69 token standard, which revolutionizes the process by requiring only a single line of text to be inscribed on the blockchain instead of a complete image. This innovation significantly reduces fees for minters.

Luminex tweeted, “As the number of inscriptions grows, Bitcoin block spaces become increasingly scarce and costly. [BRC-69] allows the final image to be automatically rendered on all ordinals-frontends, using solely on-chain resources, thanks to recursive inscriptions.”

This launch follows a period of exponential growth in Bitcoin’s on-chain activity, driven by the soaring popularity of Ordinals.

Ordinals employ an inscription method to create NFT-like assets on the Bitcoin network. This method also facilitated the creation of BRC-20 fungible tokens, giving rise to memecoin trading on the network.

According to CoinGecko, BRC-20 tokens currently hold a market cap of $262 million, a decline from nearly $1 billion in May. Despite this dip, the sector still generated $20.7 million worth of trades in the past 24 hours.

Ycharts data reveals that daily Bitcoin transactions have decreased to 328,000 after reaching a record high of over 600,000.

Luminex emphasizes that BRC-69 introduces new functionalities, such as the ability to launch collections without revealing the tokens beforehand and scheduling on-chain reveals.

Recursive ordinal inscriptions were initially introduced on June 10 to address the limitations imposed by Bitcoin’s four-megabyte block size. This technique allows ordinals to reference the features of other tokens within a collection.

For instance, without recursive inscription, every single token’s features within an NFT collection must be individually inscribed on the blockchain. In contrast, recursive inscription enables the programmatic rendering of individual traits for each token in a collection, thereby reducing on-chain fees and storage costs for users.

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