Discover Runes, a protocol set to revolutionize Bitcoin with fungible tokens. Learn how it works, its launch date, and projects building on it.
Bitcoin once again takes the spotlight, captivating enthusiasts with its soaring prices, the imminent halving event, growing demand for Ordinals, and the anticipation of something groundbreaking: Runes.
"Although Runes won't make its debut on Bitcoin until the halving event, which slashes miner rewards by half and reduces the supply of newly minted BTC, the project is already stirring excitement and interest. Here's the scoop you need:
What exactly are Runes?
"Runes represent a novel protocol conceptualized by Casey Rodarmor, the mastermind behind Ordinals. Rodarmor revolutionized the Bitcoin network with Ordinals, enabling the creation of NFT-like 'inscriptions' on the blockchain, facilitating the exchange of digital art for cryptocurrency.
"In an interview with TechCrunch, Rodarmor described his Ordinals concept as a 'lens' through which the Bitcoin blockchain reveals trackable satoshis, akin to discovering Pokémon in tall grass. Similarly, Runes provide a fresh perspective on Bitcoin, this time integrating with altcoins.
"Extending the legacy of BRC-20s, a fungible token standard utilizing the Ordinals protocol developed by the pseudonymous dev domo, Runes aim to streamline the creation of fungible tokens on the Bitcoin network.
How do Runes operate?
"While Ordinals or inscriptions are non-fungible tokens, housing unique data like collectibles or art, BRC-20s and Runes function as fungible tokens, meaning they're interchangeable—much like digital currency in your wallet.
"Similar to BRC-20s, Runes utilize Bitcoin and pay fees in Bitcoin for token creation. The differentiating factor lies in Runes' adoption of the Unspent Transaction Output (UTXO) model, akin to Bitcoin's structure, as opposed to the account model utilized by some layer-1 chains such as Ethereum.
"Advocates of the UTXO model, including Rodarmor, argue its superiority, citing Ethereum's reliance on off-chain data for token standards. Runes, in contrast, will operate entirely on-chain.
"With Runes, issuers establish token limits for minting in a transaction, ensuring equal access for creators and prospective buyers.
When can we expect the Runes protocol launch on Bitcoin?
"Rodarmor strategically aligns Runes' launch with the Bitcoin halving event. This milestone coincides with Bitcoin reaching a block height of 840,000, expected around April 20, though estimates may vary.
"The 'halving' event, ingrained in the Bitcoin protocol, recurs approximately every four years to regulate Bitcoin's inflation rate. Historically, it signals a bullish market sentiment, drawing significant attention to Bitcoin.
"Despite being over 30 days away, numerous projects are already gearing up for Runes' debut.
Which projects are leveraging Runes?
"Since Rodarmor's initial announcement of the Runes protocol in September, the Ordinals community has been bustling with activity.
"Leading the charge is RSIC, a collection of 21,000 Ordinals set to introduce a token named RUNE. RSIC Ordinals were airdropped to wallets holding specific Ordinals inscriptions, such as Ordinal Maxi Biz.
"RSIC cleverly plays on the term ASIC, a type of Bitcoin miner, offering users the opportunity to 'mine' their forthcoming token using RSIC Ordinals.
"Other noteworthy projects include Runestone, an Ordinals project by the pseudonymous NFT and Ordinals enthusiast Leonidas. Runestone comprises 112,383 Runestone Ordinals, distributed via a recent airdrop to eligible Ordinals wallets.
"Node Apes presents another pre-Runes endeavor, merging a NodeMonkes-inspired profile picture (PFP) with a 'Runic Miner' Ordinal, promising token mining capabilities when held together in a wallet.
"RuneX, boasting its decentralized exchange for Runes on Bitcoin, along with its own Ordinals collection, also garners attention.
"Additionally, the popular Bitcoin wallet Xverse announced its testnet support for Runes, with plans for mainnet integration upon launch.
"While various projects are active in the Ordinals space, it's vital to remember the distinction between Runes, the protocol, and 'runes,' the tokens built upon it—particularly since Rodarmor has yet to unveil the technical framework for Runes.
"Projects claiming to mine runes currently essentially operate as a 'points program' on Bitcoin, granting rewards to holders of specific Ordinals in their wallets.
What's the significance of Runes?
"Rodarmor transparently outlines his motives behind Runes' inception. In a recent conversation on his 'Hell Money Podcast,' he emphasizes the potential of Runes to redirect liquidity, technology, and attention back to Bitcoin.
"Acknowledging the industry's speculative nature, Rodarmor envisions Runes as a means to engage with cryptocurrency honestly, without lofty promises of revolutionizing finance. Instead, Runes offer a platform for fair token launches, mitigating the risk of exploitation.
"While Rodarmor's intentions for Runes are clear, the future actions of developers utilizing the protocol remain uncertain once it's in circulation.
"'I'm not creating a shitcoin,' Rodarmor asserts. 'I'm creating a venue for people to create shitcoins, which is possibly worse and more dangerous. We'll see.'