The inventor of Bitcoin Ordinals is proposing a brand new Bitcoin-based fungible token protocol as a possible various to the BRC-20 token customary.
The BRC-20 customary was launched in March by an 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 thought simply dropped: Runes.
A worse-is-better fungible token protocol for Bitcoin.https://t.co/TPVrUvWxm8
— Casey (@rodarmor) September 25, 2023
BRC-20 permits the minting and switch of fungible tokens by way of the Ordinals protocol on Bitcoin. However the challenge with BRC-20 tokens is that they spam Bitcoin with “junk” Unspent Transaction Outputs or UTXOs, argued Rodarmor.
BRC-20 tokens have the “undesirable consequence of UTXO proliferation,” he defined in a Sept. 25 put up, proposing Runes as a UTXO-based various.
“Protocols which are 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 look like going away.
– Employs a UTXO-based system, notably easier 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’d function hurt discount in comparison with present protocols,” Rodarmor added.
UTXOs characterize the quantity of cryptocurrency left in a pockets following a accomplished transaction, the place the steadiness is utilized in subsequent transactions and is saved within the UTXO database.
Bitcoin’s UTXO mannequin performs a job in making Bitcoin an auditable and clear ledger by stopping the double spending drawback.
Rodarmor mentioned different fungible token protocols on Bitcoin, comparable to Actually Good for Bitcoin, Counterparty and Omni Layer have issues of their very own.
Whereas Rodarmor admitted 99.9% of fungible tokens are full of scams and memes, he believes the correct fungible token protocol can add worth to the Bitcoin community:
“Creating fungible token protocol for Bitcoin may deliver 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 mentioned he got here up with the Runes thought final week and that he wasn’t positive 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 that may create a Rune software up and working as a method to additional Rodarmor’s proposal.
Open $100k funding provide in upcoming @BTCFrontierFund accelerator for first crew who can get a working (not horrible) Rune indexer, issuance and/or switch app, up dwell and working
Do not make the tickers required to be distinctive, might be a shit present
DM me. Critical provide. 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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