Asset Security | Discrepancy in BRC-20 Version Leads to Suspension of Related Trading on Some Platforms

BRC-20 tokens appearing in multiple versions simultaneously on multiple exchanges may lead to the double spending issue, resulting in potential loss of user assets.

Multiple Versions of BRC-20 Tokens Simultaneously Appearing

Yesterday morning, a user on X Twitter reported that there was an issue with the sequential index of BRC-20 tokens, with different versions running simultaneously on major exchanges. This could potentially lead to double spending issues and result in asset loss. Users are advised not to trade BRC-20 tokens at this time.

Responses from Exchanges

Currently, the trading of BRC-20 tokens is mainly controlled by three major exchanges: OKX, UniSat, and Magic Eden. The latter two have announced and implemented corresponding measures, while OKX has not made any related announcements as of now.

Magic Eden: Trading Suspended

We’ve temporarily paused BRC-20 trading to best protect users until full ord consensus across all BRC-20

All other trading remains live on Magic Eden in the meantime!🫡

— Magic Eden on Bitcoin 🟧 (@MEonBTC) October 22, 2023

Magic Eden has temporarily suspended trading of BRC-20 tokens to protect users until all BRC-20 token-related exchanges reach a consensus and operate with the same version.

UniSat Wallet: Ongoing Monitoring

We have been made aware of a brc-20 indexing mismatch due to different versions of the ord software.

UniSat Wallet and services are aligned with the current ord version 0.9 ensuring correct matching results with https://t.co/SB4uYoPS0G.

We are monitoring what contributors…

— UniSat Wallet – Store, Inscribe and Search. (@unisat_wallet) October 22, 2023

The team has acknowledged the issue, which stems from different versions of the ord software causing inconsistency in BRC-20 indexes. Currently, UniSat Wallet and services adhere to ord v0.9, and the team will continue to monitor developer updates and inform users promptly.

Additional Information: Double Spending Issue

What happens if you trade BRC-20 tokens at this time? The double spending issue, where a malicious actor can list on multiple exchanges simultaneously, arises because there are multiple versions of the same BRC-20 token. This allows for multiple transactions to be completed. However, once all exchanges reach a consensus on a specific version in the future, the other versions of BRC-20 tokens will lose their value, resulting in asset loss for buyers.

Continue to monitor the buying and selling of BRC-20 tokens, and investors are advised to exercise caution.