What is SATS? Bitcoin's BRC-20 Token Explained

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Did you think BRC-20 tokens were just a fleeting trend? While some skeptics remain—especially among Bitcoin maximalists—the resurgence of Bitcoin in 2023 has reignited interest in inscriptions. Before diving into SATS, the BRC-20 token, it’s crucial to clarify the difference between SATS (the token) and sats (short for satoshis).

SATS is an innovative token built on the BRC-20 standard, whereas sats refer to the smallest unit of Bitcoin (1 BTC = 100 million satoshis). Unlike SATS, sats aren’t standalone tokens but fractional Bitcoin units essential for microtransactions.

Key Takeaways


Understanding SATS

SATS emerged in March 2023 via the Bitcoin ordinals protocol, which assigns unique IDs to individual satoshis. These inscribed satoshis can carry data (like JSON) to create fungible tokens, expanding Bitcoin’s utility beyond payments.

How BRC-20 Tokens Work

⚠️ Challenges:


The BRC-20 Token Standard

Created by an anonymous developer (Domo) in 2023, BRC-20 tokens use JSON inscriptions to:

  1. Deploy tokens.
  2. Mint new units.
  3. Enable transfers.

BRC-20 vs. ERC-20

| Feature | BRC-20 (Bitcoin) | ERC-20 (Ethereum) |
|----------------|--------------------------|--------------------------|
| Smart Contracts | No | Yes |
| Flexibility | Limited | High (DeFi, DApps) |
| Security | Bitcoin’s robust chain | Depends on contract code |

👉 Explore BRC-20 tokens further


SATS in Action

Step-by-Step Process

  1. Deploy: Inscribe token details (e.g., "max_supply": 1000000) on-chain.
  2. Mint: Generate tokens via additional inscriptions.
  3. Transfer: Send tokens by embedding transfer JSON in Bitcoin transactions.

💡 Use Cases:


Community Reactions

Pro-SATS Camp

Anti-SATS Camp

FAQ

Q: Can SATS enable DeFi on Bitcoin?
A: Possibly, but smart contracts are needed for complex applications.

Q: Why are fees rising?
A: Inscriptions compete for block space, driving up demand.

Q: Is SATS a scam risk?
A: Yes—verify projects thoroughly in this experimental phase.


Latest SATS Developments (2024)

👉 Track SATS price movements


Final Thoughts

SATS exemplifies Bitcoin’s evolving ecosystem, blending innovation with controversy. While BRC-20 tokens like SATS unlock new possibilities, their long-term viability hinges on addressing infrastructure gaps and community consensus.

Will SATS endure? Only time—and the market—will tell.


Disclaimer: This article is for informational purposes only. Cryptocurrency investments carry high risk; conduct independent research before participating.

© 2025 OKX. Reproductions must credit: “This article is © 2025 OKX and is used with permission.”


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