March 27, 2024
Bitcoin Ordinals Creator Proposes 'Runes' as BRC-20 Alternative
Latest Cryptocurrency News

Bitcoin Ordinals Creator Proposes ‘Runes’ as BRC-20 Alternative

The inventor behind Bitcoin Ordinals is putting forth a novel Bitcoin-based fungible token protocol as a potential substitute for the BRC-20 token standard.

BRC-20, introduced in March by the anonymous developer “Domo,” saw rapid growth, reaching a market cap of $1 billion within just two months. Prominent tokens like PEPE and ORDI were among the notable BRC-20 creations within the Bitcoin ecosystem. BRC-20 allows for the creation and transfer of fungible tokens using the Ordinals protocol on Bitcoin. However, one key issue with BRC-20 tokens, according to Rodarmor, is their propensity to clutter the Bitcoin network with “junk” unspent transaction outputs (UTXOs).

Rodarmor articulated this concern in a blog post dated September 25, proposing an alternative called “Runes,” which operates on a UTXO-based foundation. He emphasized that UTXO-based protocols align more naturally with Bitcoin and promote the minimization of the UTXO set by avoiding the generation of unwanted UTXOs. In his words,

“Protocols that are UTXO-based fit more naturally into Bitcoin and promote UTXO set minimization by avoiding the creation of ‘junk’ UTXOs.”

UTXOs represent the remaining cryptocurrency balance in a wallet after a transaction, and they play a crucial role in ensuring Bitcoin’s transparency and security by preventing double-spending.

Rodarmor acknowledged that other fungible token protocols on Bitcoin, such as Really Good for Bitcoin, Omni Layer, and Counterparty, have their issues. Despite acknowledging that a significant portion of fungible tokens are associated with scams and memes, he believes that a well-designed fungible token protocol can bring value to the Bitcoin network. He stated, “Creating a good fungible token protocol for Bitcoin might bring significant transaction fee revenue, developer mindshare, and users to Bitcoin.”

During a Twitter Spaces session on September 25 with co-host Trevor Owens from The Ordinals Show, Rodarmor mentioned that he had come up with the Runes concept just the week before and wasn’t certain about its future development.

Following the discussion, Owens suggested allocating $100,000 from the Bitcoin Frontier Fund to potential developers willing to bring a Rune application to life, as a way to further advance Rodarmor’s proposal.

Photo by Karolina Grabowska

Related posts

Ex-Deutsche Bank Executive Pleads Guilty in ‘R3 Crypto Scam’

Cheryl  Lee

Central Banks Should Take The Helm in CBDC Development

Kevin Wilson

Immutable Boosts Web3 Gaming with Transak Integration

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More