Rune

Bitcoin

when

<img decoding="async" width="2048" height="1365" src="https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon.jpg" class="attachment-full size-full wp-post-image" alt="bitcoin" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon.jpg 2048w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-300x200.jpg 300w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-1224x816.jpg 1224w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-768x512.jpg 768w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-1536x1024.jpg 1536w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-150x100.jpg 150w, https://coingape.com/wp-content/uploads/2024/04/bitcoin-cash_11zon-272x182.jpg 272w" sizes="(max-width: 2048px) 100vw, 2048px">
<a href="https://coingape.com/bitcoin-transaction-fees-shoots-amid-launch-of-runes-protocol/" rel="noopener noreferrer nofollow">Bitcoin (BTC) gas fee</a> has seen a progressive surge recently and Abra Global CEO Bill Barhydt believes that it is tied to Runes, a new proposed token standard on Blockchain.
<h2 id="strong-bitcoin-gas-fee-runes-and-ordinals-link-strong">Bitcoin Gas Fee, Runes, and Ordinals Link</h2>
The much-anticipated <a href="https://coingape.com/bitcoin-halving-4-0-is-a-success-what-happens-to-btc-price-next/" rel="noopener noreferrer nofollow">Bitcoin halving event</a> went live earlier today but Casey Rodamor’s latest creation Runes seems to be taking all the attention at the moment. Barhydt highlighted that this token standard is contributing to a massive hike in Bitcoin transaction fees.&nbsp;
Runes provides an easier and more efficient means for users to create fungible tokens on the Bitcoin blockchain. In other words, the primary role of the token standard is to facilitate the launch of fungible tokens on Bitcoin, per the statement from Barhydt. He further stated that the most common fungible tokens as of today are ERC-20 tokens on Ethereum.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Runes!
 What are Runes, why are they so interesting and why are they causing a huge spike in <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#bitcoin</a> transaction fees…
 Read on….
 Runes is a new proposed token standard on Bitcoin that makes it easier and more efficient for users to create fungible tokens on the blockchain.…
 — Bill Barhydt (@billbarX) <a href="https://twitter.com/billbarX/status/1781691645664104722?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 20, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
While Rodamor is also connected to the release of <a href="https://coingape.com/bitcoin-ordinals-volume-hits-50-million-nft-nodemonkes-price-rally/" rel="noopener noreferrer nofollow">Ordinals</a>, Runes is quite different from Ordinals which permits the creation of Non-Fungible Tokens (NFTs). Ordinals allow people to “inscribe” data on the smallest units of Bitcoin (i.e. satoshis) to create highly valued assets on Bitcoin.&nbsp;
Both protocols still share a few similarities including the fact that they both allow people to “etch” and mint tokens on-chain.
<h2 id="strong-capabilities-of-rune-highlighted-by-abra-ceo-strong">Capabilities of Rune Highlighted By Abra CEO</h2>
Runes also utilizes small, lightweight transactions known as “edicts”. This feature is usually used to transfer ownership of tokens without impacting the Bitcoin network negatively. In a bid to simplify the creation and management of fungible tokens, Runes leverages Bitcoin’s UTXO model and the OP_RETURN opcode.&nbsp;
“Each Rune transaction can specify multiple operations across different Runes,” Abra Global CEO stated. “In the event of a token transfer, the Runes protocol will split the UTXO into multiple new UTXOs based on the instructions in the OP_RETURN data.”
Barhydt outlined certain benefits of having Runes in the Bitcoin ecosystem including minimizing on-chain footprint and improving UTXO management. He strongly believes that the token standard will bring about a more simplified approach to creating fungible tokens on the Bitcoin network, especially when compared to the likes of <a href="https://coingape.com/this-brc-20-proposal-can-be-a-game-changer-heres-how/" rel="noopener noreferrer nofollow">BRC-20</a>, RGB, and Taproot.
Runes users do not need to rely on any off-chain data or native tokens before they can create multiple tokens and manage them easily on-chain.&nbsp;
The post <a href="https://coingape.com/bitcoin-gas-fee-surge-abra-global-ceo-explains-why/" rel="noopener noreferrer nofollow">Bitcoin Gas Fee Surge: Abra Global CEO Explains Why</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Bitcoin Gas Fee Surge: Abra Global CEO Explains Why

Table of Contents

Coingape News Media

Other articles published on Apr 20, 2024

Crypto Gainers and Losers of the Halving Week

Solana Network Struggles with Congestion and Sees Variable Crypto Prices

Angola Implements Ban on Crypto Mining

Bitcoin Halving Seen as ‘Buy the News’ Event: Bitwise CIO

Imminent Altcoin Surge - Essential Insights on Altcoin Season

Historical Event Bitcoin Halving Happened: What’s the Latest on BTC? Who Got the First BTC of the...

Join our free newsletter for daily crypto updates!