Bitcoin Ordinals innovator Casey Rodarmor presents BRC-20 alternative ‘Runes’
In his continuous quest to improve the world of cryptocurrency, Casey Rodarmor, the mastermind behind Bitcoin Ordinals, is proposing a new and exciting Bitcoin-based fungible token protocol called “Runes.” This protocol has the potential to be a viable alternative to the widely used BRC-20 token standard, which was launched earlier this year.
What is BRC-20?
The BRC-20 token standard, created by an anonymous developer known as “Domo,” gained immense popularity within just two months of its launch. Notable BRC-20 tokens like PEPE and ORDI have contributed to its impressive $1 billion market cap. However, Casey Rodarmor believes that BRC-20 tokens come with their own set of issues.
According to Rodarmor, the main problem with BRC-20 tokens is that they generate an excessive number of “junk” unspent transaction outputs (UTXOs) on the Bitcoin blockchain. In order to address this issue, he proposes Runes as a UTXO-based alternative to the BRC-20 standard.
Runes is a fungible token protocol that operates within the Bitcoin network. It utilizes a UTXO-based system, which aligns more naturally with Bitcoin and promotes the minimization of UTXOs. By avoiding the creation of unnecessary UTXOs, Runes aims to reduce the strain on the Bitcoin blockchain while still maintaining the benefits of fungible token transactions.
Casey Rodarmor acknowledges that many fungible token protocols in the cryptocurrency industry are often associated with scams and memes. However, he believes that implementing a well-designed and robust fungible token protocol, such as Runes, could significantly contribute to the Bitcoin network’s success.
The Importance of UTXOs
To fully grasp the significance of Runes and its UTXO-based system, it’s essential to understand the role of UTXOs in the Bitcoin ecosystem. UTXOs represent the remaining cryptocurrency balance in a wallet after a transaction has been completed. These UTXOs are utilized in subsequent transactions and are stored in the UTXO database, ensuring the integrity and transparency of the Bitcoin ledger.
By employing a UTXO-based system, Runes not only simplifies the token protocol but also aligns more closely with the core philosophy of Bitcoin. This approach sets Runes apart from other fungible token protocols, like Really Good for Bitcoin, Counterparty, and Omni Layer, which have their own shortcomings and limitations.
The Potential of Runes
Casey Rodarmor recognizes the immense value that a well-designed fungible token protocol could bring to the Bitcoin network. He believes that creating such a protocol can attract more users, generate substantial transaction fee revenue, and increase developer engagement with Bitcoin.
Despite being skeptical of most fungible tokens due to the prevalence of scams and memes, Rodarmor remains hopeful for the potential of Runes. He suggests that Runes could serve as a solution to the existing problems associated with fungible token protocols on Bitcoin.
The Future of Runes
Casey Rodarmor’s proposal for Runes has garnered attention and support within the cryptocurrency community. Trevor Owens, co-host of The Ordinals Show, has even offered a $100,000 investment from the Bitcoin Frontier Fund to developers willing to bring the Runes concept to life.
While Rodarmor hasn’t confirmed whether he will pursue further development of Runes, the possibility of securing the necessary resources could be a game-changer for the project. With the potential backing of the Bitcoin Frontier Fund, Runes may have a chance to revolutionize the fungible token landscape within the Bitcoin network.
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