The witness discount refers to the reduction in data “weight” given to the witness portion of a Bitcoin transaction — the part that contains the signatures used to prove ownership. Implemented as part of the 2017 segregated witness (SegWit) upgrade, this discount effectively lowered the fees for SegWit transactions by making the witness data count for less when calculating the total size of a transaction.

In simpler terms, the witness data gets a 75% discount, meaning that it only counts as one-quarter of its actual size when determining how much space it takes up in a Bitcoin block. This allows for more transactions per block and reduces costs for users who adopt…

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Introduction

BRC-20 tokens are an experimental and inefficient token standard designed for creating fungible tokens on the Bitcoin blockchain. Inspired by Ethereum’s ERC-20 tokens, BRC-20 tokens leverage the Bitcoin Ordinals protocol to inscribe data onto individual satoshis, making them transferable and tradable.

Origins of BRC-20 Tokens

The BRC-20 token standard was introduced by a pseudonymous developer named Domo in March 2023. This development came shortly after the launch of the Bitcoin Ordinals protocol in January 2023 by Casey Rodarmor, which allowed users to inscribe data onto individual satoshis, enabling the creation of NFTs on the Bitcoin blockchain. The first…

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South Dakota legislature has made a groundbreaking move allowing the state to invest in Bitcoin. Representative Manhart introduced House Bill 1202 which recently passed enabling up to five percent of state funds to be allocated into Bitcoin. This decision marks a significant shift towards integrating cryptocurrency into traditional financial strategies for government funds.

The new legislation outlines specific requirements for secure Bitcoin investment and storage. The State Investment Council will manage direct investments utilizing a secure custody solution ensuring optimal security of the digital assets. Only qualified custodians are permitted to handle these investments reflecting a robust approach to safeguard state assets.

This innovative step by South Dakota could set a precedent for other states considering digital assets as a viable investment option. By adopting Bitcoin the state not only diversifies its investment portfolio but also aligns itself with modern financial technologies making it a groundbreaker in governmental financial management.

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