The inventor of Bitcoin Ordinals is proposing a brand new Bitcoin-based fungible token protocol as a possible alternative to the BRC-20 token commonplace.
The BRC-20 commonplace 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 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 difficulty 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 explained in a Sept. 25 put up, proposing Runes as a UTXO-based alternative.
“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 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 steadiness is utilized in subsequent transactions and is saved within the UTXO database.
Bitcoin’s UTXO model performs a job 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 problems of their own.
Whereas Rodarmor admitted 99.9% of fungible tokens are crammed with scams and memes, he believes the suitable fungible token protocol can add worth to the Bitcoin community:
“Creating a very good fungible token protocol for Bitcoin may deliver important transaction charge income, developer mindshare, and customers to Bitcoin.”
Associated: Ordinals still make up majority of Bitcoin txs despite price collapse
In a Sept. 25 Twitter Areas with The Ordinals Present co-host Trevor Owens, Rodarmor said 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 that may create a Rune software up and operating as a method to additional Rodarmor’s proposal.
Open $100k funding provide in upcoming @BTCFrontierFund accelerator for first workforce who can get a working (not horrible) Rune indexer, issuance and/or switch app, up dwell and operating
Do not make the tickers required to be distinctive, shall be a shit present
DM me. Severe 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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