The inventor of Bitcoin Ordinals is proposing a brand new Bitcoin-based fungible token protocol as a possible different to the BRC-20 token customary.
The BRC-20 customary was launched in March by nameless developer “Domo.” Inside two months, the BRC-20 market cap reached $1 billion, with PEPE and ORDI among the many most notable BRC-20 tokens created on Bitcoin.
New horrible concept simply dropped: Runes.
A worse-is-better fungible token protocol for Bitcoin.https://t.co/TPVrUvWxm8
— Casey (@rodarmor) September 25, 2023
BRC-20 allows the minting and switch of fungible tokens by way of the Ordinals protocol on Bitcoin. However the concern with BRC-20 tokens is that they spam Bitcoin with “junk” unspent transaction outputs, or UTXOs, argues Rodarmor.
BRC-20 tokens have the “undesirable consequence of UTXO proliferation,” he defined in a Sept. 25 weblog submit, proposing Runes as a UTXO-based different.
“Protocols which might be UTXO-based match extra naturally into Bitcoin and promote UTXO set minimization by avoiding the creation of ‘junk’ UTXOs.”
TLDR on Runes – A possible fungible token protocol for Bitcoin
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– Casey stays skeptical, citing “99.9% are scams and memes,” however recognises they do not seem like going away.
– Employs a UTXO-based system, notably less complicated than BRC-20.
– Makes use of the letter ‘R’ within the… https://t.co/zYP43f70gh
— Franken (@ItsFranken) September 25, 2023
“If this protocol had a small on-chain footprint and inspired accountable UTXO administration, it would function hurt discount in comparison with current protocols,” Rodarmor added.
UTXOs symbolize the quantity of cryptocurrency left in a pockets following a accomplished transaction, the place the stability is utilized in subsequent transactions and is saved within the UTXO database.
Bitcoin’s UTXO mannequin performs a task in making Bitcoin an auditable and clear ledger by stopping the double-spending downside.
Rodarmor stated different fungible token protocols on Bitcoin, resembling Actually Good for Bitcoin, Counterparty and Omni Layer, have issues of their very own.
Rodarmor’s issues with current fungible token protocols on Bitcoin: Supply: Casey Rodarmor
Whereas Rodarmor admitted 99.9% of fungible tokens are crammed with scams and memes, he believes the fitting fungible token protocol can add value to the Bitcoin community:
“Creating fungible token protocol for Bitcoin would possibly convey important transaction payment income, developer mindshare, and customers to Bitcoin.”
Associated: Ordinals nonetheless make up majority of Bitcoin txs regardless of value collapse
In a Sept. 25 Twitter Areas with The Ordinals Present co-host Trevor Owens, Rodarmor stated he got here up with the Runes concept final week and that he wasn’t certain whether or not he would pursue it any additional.
Shortly after the decision, Owens floated providing $100,000 from the Bitcoin Frontier Fund to potential builders who can get a Rune software up and working as a method to additional Rodarmor’s proposal.
Open $100k funding supply in upcoming @BTCFrontierFund accelerator for first staff who can get a working (not horrible) Rune indexer, issuance and/or switch app, up stay and working
Do not make the tickers required to be distinctive, might be a shit present
DM me. Severe supply. pic.twitter.com/6W0IwlhB9x
— trevor.btc (@TO) September 26, 2023
Cointelegraph reached out to Rodarmor for remark however didn’t obtain an instantaneous response.
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