SRC-20: Understanding Bitcoin Stamps and Token Protocols

  • SRC-20 is a token standard that supports Bitcoin stamps, often referred to as Bitcoin’s NFTs.
  • Bitcoin stamps are a protocol that’s considered a secure path for tradeable art, embedding Bitcoin’s transaction data, similar to BRC-20 standards.

Exploring the world of digital assets may prove to be a challenging task, especially when working in the genre of Stamps and SRC-20 protocols. Minting these tokens consists of processes that are usually different from those on other blockchains. The stamps usually work over the concept of Counterparty, which is a peer-to-peer Bitcoin-based platform.

What is SRC-20?

SRC-20 is a platform that is quite similar to BRC-20, but when it comes to embedding data, they both work differently. It usually supports Bitcoin’s stamp, which is Bitcoin’s NFT. This standard allows the minting of new tokens over Bitcoin’s blockchain, the technology that introduced a decentralised financial system that could take control from centralized finance.

The initialization of SRC-20 and Ordinals has broadened the facilitation of the Bitcoin blockchain, making it a network with expanded usage. The establishment of the Bitcoin STAMP protocol (Secure Tradeable Art Maintained Securely) is among the recent advancements in the Bitcoin network. The taproot protocol helps to add data to the Bitcoin blockchain with advancements in speed, security, and overall efficiency.

Bitcoin has undergone various changes in its ecosystem to counter issues like high transaction fees and scalability. It has improved its scalability by introducing new technologies like SegWit, the Lightning network, and Bitcoin Cash (BCH). The SRC protocol led to the improvement of data-adding methods in Bitcoin’s blockchain.

How Does SRC-20 Work?

SRC-20’s token standard format allows smart contracts to interact with different arbitrary fungible tokens. This provides all the methods that could be learned and implemented from ERC-20. It provides various advantages over other cryptocurrencies, including being programmable, stable, and secure. Its approach makes it stand apart from others by following a method of working.

SRC-20 tokens are created by the Minting process, in which Bitcoin is locked on Stack’s blockchain. After minting bitcoin tokens, they are further converted into SRC-20 tokens, which can be used further in trading, investments, and building applications. These tokens are proportional to Bitcoin, meaning they have the same value as the Bitcoin that was used for minting. Because of that, SRC-20 is considered a better investment.

SRC-20 tokens are secure compared to other cryptocurrencies, as they are developed over Bitcoin’s blockchain. Stack is a Layer-2 blockchain developed over Bitcoin. This means SRC-20 tokens are backed by the Bitcoin blockchain’s security, which counters the issues by making them interoperable and programmable.

Advantages of the SRC-20 Token Standard

SRC-20 token standards claim STAMP to be the best option or alternative to other standards, as it is suitable for users looking for long-term and secure assets. These standards have the following advantages as well:

  • Fractional Ownership: SRC-20 tokens allow assets to be divided into smaller fractions, making investment opportunities more accessible to a wider range of participants, even with limited resources.
  • Transparency: Leveraging blockchain technology, SRC-20 tokens provide a transparent and auditable record of transactions, fostering trust among users and minimizing the risk of fraudulent activities.
  • Security: As it was developed over Stack blockchain, which is a Layer-2 solution for Bitcoin’s blockchain network, its security is ensured by Bitcoin’s security as well. Along with programmability and interoperability, it provides great security compared to other blockchain technologies.
  • Compliance: SRC-20 tokens are designed to comply with regulatory requirements set forth by various authorities, including the Securities and Exchange Commission (SEC), ensuring a more secure and compliant investment environment.
  • Increased Liquidity: SRC-20 tokens contribute to improved liquidity by facilitating faster and more straightforward trading on compatible platforms, enhancing the marketability and value of the tokens.
  • DApp Support: SRC-20 tokens can be utilized in the creation of decentralized applications (DApps), providing a secure and feature-rich foundation for innovative solutions.
  • Programmable: SRC-20 supports building decentralized applications (dApps) because of its programmability. This enables developers to take advantage of decentralized and innovative solutions.
Advantages of SRC-20 Tokens (Source: antier solutions)


SRC-20 is a newly developed platform, and therefore it doesn’t have many marketplaces, as it may take some time to be available on wallets. In the era of dominating market capitalization, SRC-20 emerged as a solution for programmability and security. Involving in this token standard and STAMPS opens the door for artistic expression and financial opportunities.

Leave a Reply

Your email address will not be published. Required fields are marked *

© Copyright 2023 | marketcapitalize