What is Drc-20 and How Can You Mint a Doginal?

Since its inception, the cryptocurrency industry has gone through many evolutions. From ordinary digital tokens to digital NFTs to tokenized real-world assets. Ethereum led the way with digital NFTs, but now other blockchains are introducing new token standards, allowing users to bring new ideas to the blockchain.

Joining the trend is Dogecoin with its new token standard, DRC-20. In this article, we look at how the DRC-20 token standard works and compare it to other recent token standards. Read on to learn how to mint your own DRC-20 token.

What are Token Standards?

Before we delve into the intricacies of the DRC-20 token standard, it’s important to know what a token standard even is. Token standards refer jointly to a set of rules, conditions, and functions that guide how a crypto token functions.

Token standards are important for token functionality within smart contracts. They also provide a baseline guide for making your own token.

What is DRC-20?

DRC-20 tokens are a type of digital asset or token that exists on a specific blockchain platform. They adhere to a set of standards known as the DRC-20, which defines a common list of rules and functions that the tokens must follow and implement. This standardization ensures compatibility and functionality across various applications and services within the blockchain.

Token standards serve various functions within a blockchain. First, they serve as a basis for uniformity. Having different tokens operating on different bases of functionality on a single blockchain is nothing short of a recipe for disaster. And so, token standards serve to unify all the tokens on a blockchain so that they work together with the blockchain network seamlessly

How Does DRC-20 Work?

Making NFTs on the Bitcoin network was impossible until the BRC-20 token standard and the underlying ordinal technology. An ordinal is quite simply the resulting BRC-20 token you get after inscribing a Satoshi, the smallest unit of Bitcoin with customised metadata. Metadata can be anything like images, videos, or text. Ordinals exist separately from bitcoin because they are not attached to part of the Bitcoin but to a different unit (satoshi), which represents 1/100,000,000 of the Bitcoin.

In the same way, NFTs entered the Dogecoin network through the DRC-20 token standard. The DRC-20 token standard was modelled closely after Bitcoin’s BRC-20 and ordinal technology. On the Dogecoin network, instead of ordinals, you have doginals, and instead of satoshis, you have shibes. Similarly, users can create an NFT by inscribing an elon (1/100,000,000 DOGE) with metadata Metadata can be anything under 4 MB. After inscribing, the resulting DRC-20 token is simply known as a doginal.

Doginals are separate tokens. Once a shibe has been inscribed, it exists as an individual token, separate from the Dogecoin. Minting a token is a relatively easy and cost-efficient process thanks to tools like Doginal Explorer and DPAL wallet.

What Makes the Drc-20 Token Standard Unique?

Several key features make the DRC-20 token standard unique compared to other standards like ERC-20:

Potential DeFi on Dogecoin

Dogecoin’s main setback is its limited utility. The network and cryptocurrency, most known for its meme-filled history and relation with influential celebrities, has struggled since the last bear run. The DRC-20 token standard opens the dogecoin ecosystem, making it possible to integrate smart contracts on the network.

Interoperability

One of the purposes of a token standard is uniformity. Because all tokens are created according to that one standard, multiple tokens of the same standard can operate across different applications seamlessly without the need for a bridging or wrapping protocol.

Low Minting Fees

Dogecoin has always been a relatively cheap token. In the same way, transaction fees on the network stay relatively low. The cost of minting a Doginal is about 0.1 DOGE (less than a dollar), which is significantly cheaper when compared to the cost of minting an ERC-20 token, which ranges from 0.1 to 0.5 ETH ($200-$1000).

How to Mint a DRC-20 Token

DRC-20 is one of the most accessible token standards available right now. Minting a DRC-20 token of your own is as simple as getting a dogecoin wallet like a DPAL wallet or using the Doginal Explorer service. Here’s what you need to know to mint your own DRC-20 token with either of these options.

Doginal Explorer

Step 1: Start by visiting the Doginal Explorer website and click inscribe from the available options on the menu bar at the top.

Step 2: Now that you’re on the minting page, fill in the details with the token name, amount of tokens you want to mint and the wallet address you want your tokens to be deposited into.

Step 3: Click confirm and check the inscription code. You can either leave the default inscription code of add one of your own.

Step 4: Choose your preferred subscription fee and click confirm.

Step 5: Choose your preferred payment method and click confirm.

DPAL wallet method

To mint a DRC-20 token with the DPAL wallet, you need to have a wallet address of your own. Follow these steps to mint a DRC-20 token on the DPAL wallet:

1. Visit the DPAL wallet website first and click Connect Wallet. You’ll need to download the Chrome extension and fund your wallet.
2. Once you’ve done this, click on the extension and select doginals from the drop-down menu.
3. You should see two more options: select mint ordinals (experimental).
4. Fill in the fundamentals, like the token name and total supply.
5. Next up is the inscription. The wallet provides a standard inscription code that looks like this: { “p”: “drc-20”, “op”: “mint”, “tick”: “piza”, “amt”: “1000” }. You can either vary it or use it as is. The inscription is simply an HTML code that includes fundamentals on the protocol, operation, number of tokens, and name to identify the token, known as a ticker.
6. The final step is confirming the transaction. Fill in your wallet password and click confirm. You should receive your tokens in your wallet address.

Where to buy DRC-20 Tokens

Launched in May 2023, DRC-20 tokens are a relatively fresh concept. There are only a handful of minted DRC-20 tokens with a market cap big enough to pay attention to. Understandably there is no informed marketplace for doginal tokens, and only a few, many marketplaces do not have DRC-20 tokens listed for sale yet. However, that is sure to change as time progresses.

A couple of DRC-20 tokens have already hit and surpassed the 1m market cap, however, and they include DOGI, Cheems, and more. On the bright side, Gate.io recently listed the DOGI token. So you can visit the Gate.io cryptocurrency trading platform to get a DOGI token of your own giving hair.

Check out the DOGI price here and start trading DOGI currency pairs.

Is it Better to Mint or Buy a DRC-20 Token?

Deciding whether to mint or buy a DRC-20 token depends on a variety of factors and involves understanding the risks and benefits of each approach. Minting a token means you could gain significant returns if your token gains traction and appreciation. You also have full control over the functionality of the token, its supply, and more. On the other hand, minting also requires some level of technical know-how, particularly as regards smart contracts and utility within the dogecoin network.

Buying a DRC-20 token removes the requirement of technical know-how, and you can invest in a project that has already made some strides. Beyond that, you also have the option to diversify your portfolio by investing in various DRC-20 tokens.