Cats (Ordinals): What Is It and How Does It Work?

What Is Cats (Ordinals)?

Cats (Ordinals) is the first cat meme coin on the Bitcoin blockchain, adhering to the BRC-20 token standard. Following the missed opportunities in other BRC-20 meme coins like SATS and RATS, CATS presents a new entry point for investors and enthusiasts looking for active community engagement and potential growth. The project’s vision is to empower cat owners with significant digital asset holdings, potentially transforming the way pet-themed digital assets are perceived and utilized in the cryptocurrency space.

The BRC-20 token standard, on which Cats is based, is an experimental fungible token standard specifically designed for the Bitcoin blockchain. Created in early March 2023, the BRC-20 standard facilitates the creation and transfer of fungible tokens using the ordinals protocol. This protocol allows for the inscription of data such as JavaScript Object Notation (JSON) onto satoshi tokens (ordinals). Unlike other token standards that rely on smart contracts, BRC-20 tokens like CATS use JSON inscriptions to program satoshis, making each ordinal unique in nature.

To learn more about Bitcoin Ordinals, check out our article: What Are Bitcoin Ordinals? Everything You Need to Know About Bitcoin NFT.

Resources

Official Website: https://brc20cats.com/

How Does Cats (Ordinals) Work?

Cats (Ordinals) operates within the framework of the BRC-20 token standard, utilizing the ordinals protocol to create a unique digital asset on the Bitcoin blockchain. This protocol enables the inscription of additional data onto individual satoshis, the smallest unit of Bitcoin. Each CATS token is essentially a satoshi inscribed with specific data that distinguishes it from other tokens, making it unique and collectible. This approach to tokenization is simpler compared to other blockchain networks that use complex smart contracts, allowing for an easier and more accessible experience for users.

The process of creating, minting, and transferring cats tokens involves the use of JSON data inscriptions. These inscriptions are used to deploy token contracts, mint new tokens, and facilitate token transfers. Despite its innovative nature, the BRC-20 token standard has limited functionality compared to more mature token standards like ERC-20 on the Ethereum network. This limitation is primarily due to the absence of smart contract functionality in the BRC-20 standard. However, the simplicity and security offered by the Bitcoin blockchain make CATS an intriguing addition to the digital asset space.

What Is the Tokenomics of CATS Token?

The CATS token is the specific digital asset representing the cats (Ordinals) on the Bitcoin blockchain. With a total supply of 2.1 billion tokens, CATS was deployed in October 2023. The market value of CATS is relatively low, but it boasts an active community and trading volume, indicating a growing interest in this token. As of January 2024, there are over 3,000 CATS holders.

CATS is designed as a 100 percent mintable token, making it an attractive option for trading and investment, particularly for those interested in meme tokens. CATS has become a symbol of this spirit, with increasing support from various groups within the network. However, like any investment in the volatile cryptocurrency market, the benefits and risks associated with CATS tokens should be carefully evaluated.