BRC-20 tokens have mistakes and problems, says the Mintlayer CEO

• Bitcoin BRC-20 token has shot up in the past few days, whereby their combined market value on May 8, 2023 has risen to over 923 million US dollars.
• Enrico Rubboli, CEO of Mintlayer, has highlighted some of the defects and problems that are plagued by the BRC 20 token standard.
• Apart from the fact that you do not adhere to the "axioms of the core bitcoin community", mean mistakes and problems that users are likely to be pulled onto the carpet.

In the crypto messages this week, the exploding transactions of BRC-20 tokens are actually one of the reasons why the Bitcoin network experienced massive overload in view of increasing fees.

As Coinjournal emphasized on Monday morning, the cryptoma market declined, when Binance stopped the BTC withdrawals in the middle of the network overload. Some of the trendy BRC 20 tokens are Ordi, Pepe, Meme, Piza and Domo.

Enrico Rubboli, The CEO from Bitcoin Sidechain Münzleger says that BRC-20-token continues to cause excitement and There are other problems that plague the tokens and branch off decentralized applications that try to connect with intelligent contracts.

What are BRC 20 tokens?

BRC-20 or "Bitcoin Request for Comment" is a token standard for order numbers. The tokens enable the output and transmission of fungal tokens to Bitcoin and come onto the market shortly after the start of the order of the Ordinal Protocol.

with BRC 20 token can be etched digital art references in small Bitcoin transactions. The tokens are a creation of a pseudonymous crypto developer named Domo.

according to market data In the token category, the total value of all 11.705 BRC-20-token was on Monday, May 8, 923 million US dollar.

BRC-20-token are plagued by speed and transaction cost problems

The findings that Rubboli shared with Coinjournal on Monday is that, while people are btc in the embossing of BRC-20 tokens, it must be recognized that the technology behind these assets is "severely faulty". He also finds that BRC-20 tokens do not " in harmony with the axioms of the core bitcoin community ."

Rubboli said that some of the problems that are currently plagued by the tokens and offshoots of DAPPS within the ecosystem, speed, transaction costs and security.

on the subject of speed, he explains that transactions have to wait for confirmation of the Bitcoin block before settlement, which in combination with a network overload caused the users to wait hours for processing the transactions.

The CEO from Mintlayer says that BRC-20-token are potential carpet trains

According to Rubboli, the use of token-bridges and wrapped BTC user exploits could expose, with defi-bridges more than see $ 1.4 billion lost in 2022 on crypto bridges. Rubboli believes that the entire concept for BRC-20 was designed to confuse and mislead potential investors, using the creators to take advantage of the popular ERC 20 token standard.

He said this could be an opportunity for fraud, he added:

" The entire ecosystem has been set up in such a way that it is confusing and misleading. BRC-20 was not selected because it was the 20th proposed standard, but to weaken the popularity of ERC-20 token from Ethereum. The developers of the standard and the tool are not connected to Bitcoin and their software was not thorough in this application tested . "

In addition, the hundreds of BRC-20 tokens could not only be completely worthless, but also specially shaped in order to distract later investors. The creator of the BRC-20-token standards Domo previously warned Intermediate wallpaper.