Token

Evolution

ORDI

<h4><strong>Bitcoin has had very interesting developments in the last months. From new token standards and technologies to the forefront.</strong></h4> 
<p>One of the latest developments in this ever-changing ecosystem is the emergence of Runes. A groundbreaking token standard poised to replace the <a href="https://www.altcoinbuzz.io/?s=BRC-20" target="_blank" rel="noopener">BRC-20 tokens</a>. In this article, we’ll introduce what is this new innovation.</p> 
<h5><strong>Bitcoin Needs to Evolve</strong></h5> 
<p>BRC-20 tokens, inspired by ERC-20, were introduced in an attempt to address some of these limitations. While they made some improvements, the pace of innovation in the blockchain space demanded a more robust and flexible token standard. Also, there are too many BRC-20 tokens with no utility. Too much noise with scams and meme coins. This is where Runes steps in.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">New terrible idea just dropped: Runes.</p> 
 <p>A worse-is-better fungible token protocol for Bitcoin.<a href="https://t.co/TPVrUvWxm8">https://t.co/TPVrUvWxm8</a></p> 
 <p>— Casey (@rodarmor) <a href="https://twitter.com/rodarmor/status/1706438248606904382?ref_src=twsrc%5Etfw">September 25, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>What Casey Rodarmor wanted to create is a new token standard that could have:</p> 
<ul> 
 <li>Small on-chain footprint.</li> 
 <li>Responsible for UTXO management.</li> 
</ul> 
<p><strong>Note:</strong> UTXO (Unspent Transaction Output) is an unspent transaction output. The term is related to the concept of double-spending.</p> 
<p>On Twitter Spaces, Rodarmor said: <em>“Runes&nbsp;</em><em>are harm</em><em> reduction. BRC-20s create a lot of unused UTXOs. In order to spend Runes, you have to destroy UTXOs, which is good for the system as a whole. It’s also beneficial for users, enabling simpler PSBT-based swaps. Since a UTXO can only be spent once, you can create a set of transactions, and then out of those transactions, you can guarantee only one of those can be mined. BRC-20 transactions can’t do this.”</em></p> 
<h5><strong>What are Runes?</strong></h5> 
<p>Runes is a Bitcoin fungible token protocol that aims to compete not only with BRC-20, but also with <a href="https://docs.lightning.engineering/the-lightning-network/taproot-assets" target="_blank" rel="noopener">Taproot Assets</a>, RGB, <a href="https://counterparty.io/" target="_blank" rel="noopener">Counterparty</a>, and Omni Layer. What makes runes unique is that the others either work off-chain or are address (account) based.</p> 
<p>According to Rodarmor, Off-chain fungible tokens, like the ones mentioned above, need to settle off-chain data with the blockchain, resulting in an unpleasant user experience. These tokens do not integrate well with Bitcoin’s UTXO-based method.</p> 
<p>In one day, the Bitcoin ecosystem is working very fast to integrate Runes. Here is a summary of what is going on so far.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e7.png" alt="🟧" class="wp-smiley" style="height: 1em; max-height: 1em;"> What happened in the last 24 hours in the Ordinals ecosystem <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e7.png" alt="🟧" class="wp-smiley" style="height: 1em; max-height: 1em;"></p> 
 <p>LOTS of experimentation on Runes, and much more</p> 
 <p>A <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"></p> 
 <p>1/12 <a href="https://t.co/QyuCecYQjP">pic.twitter.com/QyuCecYQjP</a></p> 
 <p>— Jiurn <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9d9-1f3fd-200d-2642-fe0f.png" alt="🧙🏽‍♂️" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@Jiurn) <a href="https://twitter.com/Jiurn/status/1706951183187763679?ref_src=twsrc%5Etfw">September 27, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>How Rune Benefits Bitcoin?</strong></h5> 
<p>Rodarmor designed Runes to have a small on-chain footprint and to encourage careful UTXO management. Here is another benefit:</p> 
<ul> 
 <li><strong>Compatibility with Lightning Network and DLCs: </strong>This is a distinct advantage over BRC-20s. In simple words, users can add Runes into various multisig wallets and settle their balances to a diverse group of providers. All while introducing new use cases, developers, and users to the Lightning Network.</li> 
</ul> 
<p>The BRC-20 vs. Runes test is an excellent way to determine what end customers genuinely value. Although Runes is a stronger technological implementation of fungible tokens on Bitcoin, BRC-20 has developed strong network effects with holders and developers, particularly in Asia, and can adapt if necessary.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">BREAKING: New Fungible Token Standard called <a href="https://twitter.com/hashtag/Runes?src=hash&amp;ref_src=twsrc%5Etfw">#Runes</a> has been introduced by <a href="https://twitter.com/rodarmor?ref_src=twsrc%5Etfw">@rodarmor</a>, the creator of Bitcoin Ordinals</p> 
 <p>• Why a new standard when we have BRC-20 already?</p> 
 <p>• How do you mint or buy Runes tokens?</p> 
 <p>Here is everything you need to know<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;">:</p> 
 <p>(1/6) <a href="https://t.co/srFPY7EFwI">pic.twitter.com/srFPY7EFwI</a></p> 
 <p>— Ordinals Global (@OrdinalsGlobal_) <a href="https://twitter.com/OrdinalsGlobal_/status/1706667023982579783?ref_src=twsrc%5Etfw">September 26, 2023</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>Conclusion</strong></h5> 
<p>As Rodarmor himself put it, the post he published yesterday on his blog was just a draft of what he had in mind. So, there are many developments in Runes that we will cover in the following articles.</p> 
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<p>The post <a rel="nofollow" href="https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/runes-the-next-evolution-in-token-standards-in-bitcoin/">Runes, The Next Evolution in Token Standards in Bitcoin?</a> appeared first on <a rel="nofollow" href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Runes, The Next Evolution in Token Standards in Bitcoin?

Altcoin Buzz

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