ONFI: What Is It and How Does It Work?

ONFI - An Overview

ONFI is a unique inscription token that operates on the Bitcoin blockchain with the help of the Ordinals protocol. It has a total supply of 21 million bitcoins, and each coin can be divided into 100 million satoshis, which is the smallest denomination of Bitcoin, resulting in a total of 2100 trillion satoshis. The Ordinals protocol is used to create inscriptions on each satoshi, which can include multimedia content such as text, images, audio, and video.

ONFI has a fixed supply of 2.1 billion ONFI tokens and a significant number of storage addresses and transactions. Its 100 percent mintable token design makes it an attractive option for trading and investment, especially for those interested in meme tokens. Despite being a lighthearted token, ONFI has shown impressive price increases and a growing community, highlighting the diverse opportunities the crypto world offers for enjoyment and profit. However, as with any investment in the volatile cryptocurrency market, it is essential to carefully evaluate the benefits and risks associated with ONFI tokens.

What Is BRC-20?

The BRC-20 token standard is a unique type of fungible token that utilizes Ordinals and Inscriptions to create and manage token contracts, token minting, and token transfers, which are stored on the Bitcoin base chain. Developed by a Twitter user named @domodata on March 8th, 2023, the token's name is a play on the ERC-20 token standard used on the Ethereum network. However, unlike the ERC-20 standard, the BRC-20 token standard does not interact with smart contracts on EVM chains.

Unlike traditional token standards that are usually managed by smart contracts on EVM chains, the BRC-20 token standard is a script file stored on the Bitcoin network. This means that they can be considered as metadata attached to Bitcoin transactions through the Ordinals protocol, which allows for the creation of fungible tokens on top of Bitcoin. Although they are associated with Bitcoin, BRC-20 tokens are not Bitcoin assets themselves. Instead, they represent a different type of asset, which is stored as a JSON script file on the Bitcoin blockchain. As a result, the tokens exist in a secondary market that is separate from Bitcoin and require specialized software to be sourced, categorized, and displayed from the blockchain.

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