| BRC-20 | – Simple and easy for deployment
– Multiple wallets support | – UTXO “junk” proliferation, leading to network congestion and high transaction fees
– No smart contract functionality
– Not a real fungible token but a piece of text instruction
– Rely on 3rd-party centralised indexer to querying and interpret the transactions
– Need a ledger to record token balance |
| Atomicals(ARC-20) | – The tokens are backed by the same number of Satoshis, 1 token = 1 Satoshi
– Supports PoW token minting (Bitwork)
– No need for the off-chain ledger as it bonds to UXTO
– No creation of “junk” transactions | – Rely on 3rd-party centralised indexer for querying and interpreting the transactions
– Due to its early stage, currently the infrastructure (e.g. markets, wallets) for Atomicals is not well-developed yet |
| Taproot Assets | – Metadata is stored off-chain
– Compatibility with Lightning Network
– Uses Sparse Merkle Trees, which enable efficient verification processes | – Technical complexity could hinder user understanding, thus potentially limiting use of this protocol to issue assets
– It requires storing large volumes of data (2^256 leaves in the Merkle tree) off-chain
– High privacy as it can combine multiple transactions into one, making it challenging for anyone to track your transactions |
| Nostr Assets | – Designed to make use of Taproot Assets and Lightning Network, thus taking advantage of the benefits of those protocols
– Settlement and security of assets handled by the Lightning Network, helping to alleviate concerns around congestion and fees on the Bitcoin network | – Due to the technical complexity of Taproot Assets, it could similarly hinder user understanding and trust, potentially leading to slow adoption
– Technology is not mature |
