Navigating the world of BRC-20 tokens involves understanding both trading and the unique process of inscription on the Bitcoin blockchain. This guide covers essential operational steps, common challenges, and solutions to ensure a smooth experience with these digital assets.
How to Inscribe BRC-20 Tokens
Inscribing BRC-20 tokens requires creating a transaction on the Bitcoin network that embeds specific data. This process is fundamental for minting and managing these tokens.
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You'll typically need a compatible wallet and must prepare for network fees. The steps involve selecting the correct data format, setting gas fees appropriately, and confirming the transaction.
Why Your BRC-20 Transaction Isn't Confirming
BRC-20 operations depend on Bitcoin block confirmations. Network congestion can delay transactions, sometimes taking 1–2 days for full confirmation.
- Network Congestion: High transaction volumes slow down processing.
- Low Gas Fees: Insufficient fees may cause miners to prioritize other transactions.
- Tracking Progress: Use a blockchain explorer to monitor your transaction status.
Patience is key. If your transaction shows a confirmation status, it will likely complete eventually.
Common Reasons for Failed BRC-20 Inscriptions
Failed inscriptions can occur due to several technical issues:
- Insufficient Gas Fees: During inscription, low fees may prevent processing.
- Bitcoin Network Congestion: Delays or failures during peak times.
- Misleading Status: The interface may show "completed" while the transaction awaits blockchain confirmation.
Note: Gas fees for failed inscriptions are not refundable, as they are paid to miners.
Using an EVM Chain Inscription Tool
EVM-compatible chains offer tools to simplify inscriptions. Here’s a general guide:
- Access your wallet and navigate to the Ordinals or inscription section.
- Select the network you want to use.
- Choose between single or batch inscription mode.
- Enter transaction data, excluding any predefined prefixes like "data:".
- Set your preferred repetition frequency for transactions.
- Confirm the transaction to complete the inscription.
Note: The number of data entries determines how many signatures are needed.
Buying and Selling BRC-20 Tokens
Trading BRC-20 tokens involves using supported exchanges or marketplaces. Always ensure the platform supports BRC-20 standards.
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Key steps include depositing tokens, placing orders, and managing withdrawals. Security practices like using verified platforms and enabling two-factor authentication are crucial.
Managing Assets Without Enough BTC
BTC is needed for transaction fees. If you lack sufficient BTC:
- Acquire More BTC: Purchase from an exchange or transfer from another wallet.
- Balance Management: Regularly check your BTC balance to cover future fees.
- Fee Planning: Estimate required fees for operations to avoid interruptions.
How to Unlock Unspent Transaction Output (UTXO)
UTXOs can become locked due to previous transactions or inscriptions. Unlocking them is essential for freeing up assets.
- Go to your wallet’s BTC section and find the UTXO management tool.
- Select the UTXOs you wish to unlock.
- Confirm the unlocking action.
Note:
- Ensure UTXOs aren’t tied to valid inscriptions or NFTs to avoid asset loss.
- Unlocked assets move to an "Unlocked" section. Accidentally unlocked UTXOs can sometimes be restored, but they may only be usable for operational costs, not inscription fees.
Frequently Asked Questions
What is a BRC-20 token?
BRC-20 is a token standard on the Bitcoin blockchain using ordinal inscriptions. It enables creating and transferring fungible tokens without smart contracts, leveraging Bitcoin's security.
Why is my BRC-20 transaction pending?
Bitcoin network congestion or low gas fees can cause delays. Transactions require block confirmations, which take time during high activity. Monitor via a blockchain explorer.
Are failed inscription fees refundable?
No. Gas fees pay miner costs and are non-refundable regardless of transaction success. Always set appropriate fees to minimize failure risks.
Can I use any wallet for BRC-20 inscriptions?
Not all wallets support BRC-20. Use a compatible wallet with Ordinals functionality. Check wallet documentation for specific features.
What happens if I unlock a UTXO linked to an NFT?
Unlocking may make linked NFTs inaccessible or cause loss. Restore features might recover assets, but they could be limited to operational use. Verify UTXO status before unlocking.
How do I avoid common inscription errors?
Use recommended gas fees, avoid network peak times, and double-check data formats. Batch operations can optimize efficiency but require careful setup.