Overview
SRC-20 is a token standard associated with Bitcoin Stamps that brings a new method for minting tokens on the Bitcoin blockchain. Building on the lineage of colored coins, Ordinals and BRC-20, SRC-20 and the Stamps protocol focus on immutable, unprunable on-chain storage by embedding data into UTXOs. This approach recasts parts of Bitcoin from a pure store of value into a programmable medium for tokenized assets while raising debate about the network’s long-term purpose.
Core capabilities
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Immutable data storage: Stamps write data into UTXOs in a way intended to prevent later pruning or alteration, ensuring inscriptions remain permanently retrievable.
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Counterparty-style minting: The minting process echoes the Counterparty protocol: data (including media) is encoded, prefixed and broadcast to Bitcoin transactions to create verifiable inscriptions.
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OP_RETURN and multi-output handling: Small payloads use OP_RETURN for storage up to 80 bytes; larger files are split and stored using multi-signature outputs, then reassembled by clients.
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Compatibility with Ordinals concepts: While distinct from BRC-20, SRC-20 leverages the idea of assigning meaning to satoshis and building token logic on top of Bitcoin’s transaction model.
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User tooling and minting workflow: The ecosystem offers interfaces such as stampsrc.github.io and stampchain.io/src20, and wallet support via Hiro Wallet to mint, receive and manage SRC-20 tokens.
How it works
SRC-20’s workflow starts with encoding token metadata or media into a format suitable for Bitcoin transactions. Small data chunks can be placed in an OP_RETURN output; larger files are converted (for example, to Base64) and split across multiple outputs. The Stamps protocol appends specific prefixes (e.g., “Stamp:”) so client software can recognize and reassemble the pieces. This method mirrors Counterparty’s earlier technique of burning BTC for XCP to execute a higher-layer token logic, but Stamps target permanence by ensuring data is embedded in unspent outputs.
Minting and acquisition
To mint or buy SRC-20 tokens, users typically interact with two sites: stampsrc.github.io (to inspect tickers and metadata) and stampchain.io/src20 (to execute minting). A Bitcoin-focused wallet like Hiro Wallet is required; users obtain a receiving address, paste it into the minting UI, choose a ticker and quantity, get a BTC quote and send the indicated funds. Upon confirmation, the minted SRC-20 tokens are delivered to the specified address.
Comparison with BRC-20 and Ordinals
SRC-20 emphasizes immutability and the storage of data in UTXOs, whereas BRC-20 and Ordinals rely on inscription techniques that critics argue are more susceptible to metadata modification. The architectural differences reflect trade-offs: SRC-20’s permanence and Counterparty heritage versus BRC-20’s broader early adoption and quicker experimentation.
Limitations and considerations
There are ecosystem and philosophical tensions: embedding large amounts of data on Bitcoin increases on-chain footprint and raises concerns among purists who prefer Bitcoin as a simple monetary store. There are also UX and tooling gaps—Stamps are relatively nascent, and improved developer tools, wallets and marketplaces are needed to scale adoption.
The road ahead
SRC-20 and Stamps are in early stages. Expect continued tooling development, emerging marketplaces and debates over network resource use. If adoption accelerates, it may influence protocol discussions and community governance, potentially sparking upgrades or contentious forks. For now, SRC-20 offers a distinct, immutable avenue for tokenization on Bitcoin with clear trade-offs between permanence, usability and alignment with Bitcoin’s original design ethos.
