The Establishment and Objectives of the Layer 1 Foundation for Bitcoin’s BRC-20 Token Standard
The world of cryptocurrencies has witnessed a surge in popularity, with Bitcoin leading the charge. The emergence of new meme coins on the Bitcoin blockchain has sparked an unprecedented collaborative effort among Bitcoin developers to formalize and establish the BRC-20 fungible token standard. This initiative is being spearheaded by the recently formed Layer 1 Foundation, which aims to ensure transparency, trust, and future growth within the protocol.
The Formation of Layer 1 Foundation
Co-founded by the pseudonymous creator of BRC-20, known as Domo, the Layer 1 Foundation is a collective effort that includes participation from prominent entities in the cryptocurrency space. These entities include Hiro, Alex Labs, Oyl Dynamics, Allium Labs, UTXO Management, as well as key figures such as Bitcoin wallet developer Unisat and Ordinals aggregator Best in Slot. The foundation’s members are jointly overseeing the maintenance of the BRC-20 protocol under its auspices.
The Core Objectives of Layer 1 Foundation
The foundation’s resolution outlines several core objectives that its members are committed to pursuing. These objectives include:
1. Prioritizing simplicity in technical architecture: The foundation aims to create a straightforward and easy-to-implement standard that allows developers to build on the BRC-20 protocol with ease.
2. Adopting a safety-first approach: The foundation is committed to thoroughly testing any changes before implementing them, ensuring the safety of the protocol and its users.
3. Fostering open discussions among stakeholders: The foundation encourages all participants to voice their opinions, ensuring that a diverse range of perspectives is considered in decision-making processes.
4. Considering community feedback: The foundation values the input of its community and strives to incorporate their suggestions into development decisions.
5. Ensuring open-source and transparent protocol changes: The foundation is dedicated to making any protocol-level changes openly accessible, ensuring transparency and accountability.
Avoiding Hard Forks: Prioritizing User Interests
The potential risk of a hard fork, which would involve non-backward compatible changes to the blockchain, has been a topic of concern within the BRC-20 community. Earlier this year, disagreements among stakeholders regarding the implementation of the Jubilee update to Bitcoin Ordinals highlighted the potential for tensions.
While Domo advocated for caution and thorough testing, Unisat supported its adoption. However, Lorenzo, founder of Unisat Wallet, clarified that a hard fork was not the objective. Instead, stakeholders are committed to resolving disputes without resorting to drastic measures.
The foundation’s primary goal is to safeguard BRC-20 protocol users and prioritize their interests over individual developers’ agendas. To achieve this, the foundation aims to decentralize governance and ensure that no single entity possesses disproportionate power in decision-making processes.
The Importance of the Layer 1 Foundation for Bitcoin’s BRC-20 Ecosystem
The establishment of the Layer 1 Foundation represents a significant step in formalizing governance and ensuring the integrity of the BRC-20 protocol amid its surging popularity. By fostering transparency, prioritizing user needs, and decentralizing governance, the foundation seeks to uphold trust and facilitate sustainable growth within the BRC-20 community.
