Xverse announces testnet support for Runes protocol, gearing up for mainnet debut alongside Bitcoin halving. Runes promises more efficient minting and transactions compared to BRC-20 tokens.
In the realm of Bitcoin discourse, BRC-20 tokens have remained a prominent topic of discussion over the past year. This conversation centers around the Ordinals protocol, renowned for its capability to immortalize NFT-like assets on the blockchain, but also for its potential in launching fungible tokens. However, a novel Bitcoin-based fungible token standard dubbed Runes is poised to make waves, with leading wallet Xverse gearing up to offer its support.
Crafted by Casey Rodarmor, the mastermind behind the Ordinals protocol, Runes promises a more streamlined approach to minting and transacting fungible tokens on the Bitcoin network. Scheduled to make its grand entrance on the mainnet concurrent with Bitcoin's upcoming halving event in April, the Runes protocol is positioned as a game-changer.
Xverse made waves on Thursday by unveiling testnet compatibility for Runes, in anticipation of the impending mainnet launch. During this interim period, Xverse users will have the opportunity to engage with Runes tokens and Runes-powered applications on the testnet. The company pledges to extend its support to Runes on the mainnet as soon as the protocol goes live.
"We're thrilled to lead the charge as the inaugural wallet to provide comprehensive support for the eagerly awaited Runes protocol," expressed Ken Liao, founder and CEO of Xverse, in a press release. "With the launch of this testnet support, developers can commence testing their Runes applications, thereby fostering the growth of a novel Bitcoin layer-1 ecosystem."
The journey of the BRC-20 token standard, built atop the Ordinals protocol, commenced as an experimental endeavor that swiftly captured the attention of enthusiasts. This experiment birthed numerous tokens, many of which now reside among the top 100 cryptocurrencies by market capitalization.
However, challenges emerged along the way, as highlighted by Liao in conversation with Decrypt. BRC-20 token transactions necessitate a separate Ordinals inscription for each action, resulting in network congestion. Additionally, these transactions generate unspent transaction outputs (UTXOs), which accumulate on Bitcoin nodes.
Furthermore, inconsistencies have surfaced among various BRC-20 token indexers, impacting the tracking of minted tokens and potentially causing disruptions for traders and platforms. In response, several prominent BRC-20 developers and platforms have united under initiatives such as the recently announced Layer 1 Foundation.
Enter the Runes protocol, bearing Casey Rodarmor's imprimatur, which promises a more efficient and refined iteration of the same concept. Notably, Runes eliminates the need for an indexer. Scheduled to debut on the mainnet alongside next month's halving event, Runes embodies a pivotal moment in Bitcoin's evolutionary journey.
Xverse, already a bastion for various Bitcoin-related assets and linked protocols—including Ordinals, BRC-20 tokens, rare satoshis, and the Stacks layer-2 network—is poised for further expansion. Liao revealed that Xverse was the pioneer Bitcoin wallet to facilitate website connectivity, akin to MetaMask on Ethereum, enabling users to seamlessly interact with applications.
Embracing Runes support—initially on the testnet, but destined for the mainnet—is the logical progression in leveraging the vast potential of Bitcoin amidst the ecosystem's exponential growth over the past year and beyond. Elizabeth Olson, Head of Growth at Xverse, opined to Decrypt that Runes' integration into Rodarmor's vision for Bitcoin's evolution will be instrumental in the protocol's triumph.
"This encapsulates his vision for the amalgamation of these elements," she remarked. "Given the resounding success of Ordinals, I anticipate that Runes will ascend to similar, if not greater, heights than BRC-20 tokens.