Welcome to the exciting world of blockchain technology and its evolving components. If you’ve been involved in the blockchain space, you’ve probably come across different types of tokens, including the SRC-20 token standard. This article aims to guide you through what the SRC-20 standard is, and how it interacts with concepts like colored coins, ordinals, and stamps.

What is the SRC-20 Token Standard?

History and Purpose

SRC-20 is a technical standard used for smart contracts on the blockchain. It’s a blueprint that defines how these tokens can be transferred, how transactions are approved, and how users can access data about a token.

How SRC-20 Differs From Other Standards

SRC-20 brings numerous enhancements to its predecessors, such as the flexibility of being a contract standard for any kind of asset, not just cryptocurrency.

An Overview of Colored Coins

The Concept Behind Colored Coins

Colored coins are tokens that are marked to represent real-world assets. They can be seen as a metaphorical coloration or tagging that helps to distinguish them from other blockchain tokens.

Usage and Significance

Colored coins make it possible to create new currencies backed by assets like gold, real estate, or even other cryptocurrencies.

Understanding Ordinals

The Idea and Application

Ordinals, in the context of blockchain, are essentially transaction counters on a per-account basis. They help maintain the order of transactions and prevent replay attacks.

Stamps vs Ordinals and SRC-20

The Differences

While stamps, ordinals, and SRC-20 tokens all have their roles in the blockchain ecosystem, they serve different purposes. Stamps are more about transaction costs, ordinals are about maintaining transaction order, and SRC-20 is a token standard.

The Similarities

Their similarities lie in their aim to improve the security, efficiency, and functionality of blockchain transactions and assets.

How Stamps Work

The Mechanism

Stamps, in a blockchain context, function much like traditional postage stamps. They cover the cost of transaction processing and network use.

Benefits of Using Stamps

Stamps help maintain the health of the network by discouraging spam and unnecessary transactions.

How to Buy SRC-20 Tokens

Steps to Purchase

Buying SRC-20 tokens involves finding a compatible crypto exchange, creating an account, depositing funds, and purchasing the desired SRC-20 tokens.

Things to Consider

Remember to consider factors like transaction fees, security measures of the platform, and the liquidity of the desired token.

The Road Ahead

Future of SRC-20 Tokens

The versatility and enhanced capabilities of SRC-20 tokens hint at a promising future, with potential widespread adoption and applicability in various fields.

Challenges and Potential

Like all technologies, SRC-20 tokens will face challenges, primarily regulatory ones. But the potential benefits they offer are significant.


The world of blockchain technology is vast, with its different tokens and standards. Understanding them can help individuals and businesses leverage their benefits. SRC-20 tokens, colored coins, ordinals, and stamps are all pieces of this complex puzzle, each with its unique role and function.


1. What are SRC-20 tokens used for? SRC-20 tokens can represent any assets, not just cryptocurrency. They can be used to represent ownership or membership rights, voting rights, and much more.

2. How can I sell my SRC-20 tokens? You can sell SRC-20 tokens on any exchange that supports them. Just like buying, selling involves setting up an account, transferring your tokens to that account, and placing a sell order.

3. What are colored coins exactly? Colored coins are blockchain tokens that have been marked or “colored” to represent real-world assets.

4. What role do ordinals play in blockchain transactions? Ordinals help maintain the order of transactions and prevent replay attacks, ensuring the integrity and security of the blockchain.

5. How do stamps contribute to the health of the blockchain network? Stamps cover the cost of transaction processing and network use, discouraging spam and unnecessary transactions, thus maintaining the network’s health.

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