In mid-February, a deep dive into Ordinals and Bitcoin-based NFTs revealed an unexpected trend: the most passionate advocates behind this movement are not traditional Bitcoin maximalists, but former members of the BSV (Bitcoin SV) community. Despite BSV’s dwindling presence today, its ideological DNA is unmistakably embedded in the rapidly expanding BRC20 ecosystem.
The Origins: From BSV to Bitcoin NFTs
BSV emerged as a hard fork from BCH (Bitcoin Cash), both advocating for larger block sizes to improve scalability. However, BSV took this vision further—promoting unlimited block sizes determined by market demand. Its core philosophy? Everything should go on-chain: data, messages, applications—nothing should be left off the blockchain.
This led to the creation of Metanet, a concept pioneered within the BSV community. Metanet envisioned a value network layered directly onto the blockchain, enabling secure, immutable data transmission and storage. Developers built early prototypes like a decentralized Twitter-like social app and NFT platforms, long before these ideas gained mainstream traction on other blockchains.
One such group was the informal “Skull Society” (Skull Club), a tight-knit circle of BSV developers who experimented with on-chain applications. Years later, many of these same individuals are now at the forefront of the BRC20 revolution, applying lessons from BSV to the Bitcoin mainnet via Ordinals and Inscriptions.
BRC20: A Second Chance for BSV Ideals?
The current surge in BRC20 tokens—fungible tokens inscribed directly onto Bitcoin via Ordinals—feels like a revival of BSV's original mission: put everything on-chain, keep fees negligible, and let usage drive value.
Several key players in the BRC20 space have direct roots in BSV development:
- Unisat Wallet, the dominant BRC20 wallet, is developed by a Chinese team previously known for creating Sensible Contracts on BSV—a smart contract framework designed for simplicity and efficiency.
- Ordswap, the first dedicated BRC20 exchange, was built by the team behind RelayX, which launched the first decentralized exchange on BSV. The founder previously held a senior role at OKCoin.
- Ordinals Wallet evolved from Twetch, a social media platform built entirely on BSV that rewarded users with micropayments. With the rise of BTC NFTs, Twetch pivoted to support Ordinals.
- Even Mempool.space, one of the most widely used Bitcoin block explorers, was founded by a core BSV community member.
This isn’t coincidence—it’s continuity. The tools, mindset, and technical approach mirror what was once attempted on BSV. Now, they’re being re-deployed on Bitcoin’s more secure and valuable chain.
Why BRC20 Feels Like "Revenge" for BSV Supporters
For years, BSV supporters watched as their vision was dismissed, ridiculed, or ignored while Ethereum, Solana, and others embraced NFTs and DeFi. Meanwhile, BSV struggled with low adoption and controversy surrounding its centralization concerns.
Now, with BRC20 tokens gaining massive traction—driving record transaction volumes and fees on Bitcoin—many see it as poetic justice. The ideas once championed on BSV are finally gaining real-world momentum, just not where they expected.
They didn’t win on BSV—but they helped shape the future of Bitcoin anyway.
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Criticism from Bitcoin Purists
Not everyone welcomes this shift. Many Bitcoin maximalists argue that BRC20 and Ordinals represent a misuse of the network.
Their concerns include:
- Network congestion: BRC20 minting floods the mempool, delaying regular transactions.
- Fee inflation: With transaction fees sometimes exceeding block rewards, some fear time-bandit attacks, where miners reorganize recent blocks to capture higher-paying inscription fees.
- Centralization risks: Platforms like Unisat act as gatekeepers, deciding which inscriptions are valid—undermining decentralization.
- Double-spend vulnerabilities: Without standardized validation rules, users rely on centralized frontends to verify ownership.
- Fairness issues: The "first-come-first-served" minting model clashes with miners prioritizing high-fee transactions, creating arbitrage opportunities and unfair advantages.
Prominent critic Haotian has argued that BRC20 contradicts core blockchain principles—decentralization, scalability, and low-cost transactions—because it depends on centralized services to function reliably.
Similarly, BTCStudy contributor Ajian urges caution:
“Stop buying tokens issued via inscription methods until developers implement client-side validation rules. Otherwise, you're purchasing air—something with no verifiable ownership or protection.”
These warnings highlight a critical tension: while innovation thrives, foundational security and decentralization may be compromised.
Market Reality vs. Ideological Purity
Despite technical criticisms, market behavior tells a different story.
To most retail investors, debates over block size limits or mempool economics matter less than one question: Can I make money?
And with BRC20, many have. Tokens like ORDI, SATS, and RATS have seen explosive growth during bull runs. New projects launch daily, fueled by hype, speculation, and FOMO.
Like all MEME coins, BRC20 tokens derive value from consensus built through narrative and timing—not utility or protocol strength. Early entrants profit; latecomers often get burned. This cycle facilitates a form of wealth redistribution within the crypto ecosystem.
In this environment, success hinges not on ideology but on timing, awareness, and action.
Frequently Asked Questions (FAQ)
Q: What is BRC20?
A: BRC20 is a token standard created using Bitcoin Ordinals and Inscriptions. It allows users to issue fungible tokens directly on the Bitcoin blockchain through JSON data embedded in satoshis.
Q: Is BRC20 officially supported by Bitcoin?
A: No. BRC20 is a community-driven experiment built on top of Bitcoin using inscriptions. It is not part of Bitcoin’s core protocol.
Q: Are BRC20 tokens secure?
A: Security depends on user practices and tooling. Since there’s no native smart contract layer on Bitcoin, transfers rely on external validation. Use trusted wallets like Unisat and verify transaction details carefully.
Q: How does BRC20 relate to BSV?
A: Many BRC20 developers were previously active in the BSV ecosystem. Their experience building on-chain applications on BSV laid the groundwork for similar innovations on Bitcoin via Ordinals.
Q: Can BRC20 damage the Bitcoin network?
A: Critics argue that excessive use of inscriptions can congest the network and increase fees for regular transactions. However, proponents believe market forces will balance usage over time.
Q: Should I invest in BRC20 tokens?
A: These are highly speculative assets. Only invest what you can afford to lose. Focus on projects with active communities and clear roadmaps—if any exist.
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Final Thoughts: Innovation vs. Integrity
BRC20 represents both an opportunity and a challenge for Bitcoin. On one hand, it brings renewed developer interest and usage to the network. On the other, it raises legitimate concerns about long-term sustainability and alignment with Bitcoin’s original purpose.
For former BSV builders, it’s a moment of vindication—a chance to prove that their vision of an on-chain world wasn’t wrong, just premature.
Whether this movement strengthens or strains Bitcoin’s foundation remains to be seen. But one thing is certain: the line between rebellion and revolution is often drawn in retrospect.
As always in crypto: stay curious, stay cautious, and never stop learning.
Keywords: BRC20, Bitcoin NFTs, Ordinals, Inscriptions, BSV community, Unisat Wallet, BTC network congestion