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Creator of Bitcoin Ordinals, Casey Rodarmor, introduces BRC-20 alternative called ‘Runes’
The creator of Bitcoin Ordinals is introducing a new Bitcoin-based fungible token protocol as a possible substitute for the BRC-20 token standard.
The BRC-20 standard was introduced in March by an anonymous developer known as “Domo.” Within a span of two months, the market capitalization of BRC-20 reached $1 billion, with PEPE and ORDI being among the most prominent BRC-20 tokens developed on Bitcoin.
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A new unfortunate concept has emerged: Runes.
A worse-is-better fungible token protocol for Bitcoin. https://t.co/TPVrUvWxm8— Casey (@rodarmor) September 25, 2023
BRC-20 facilitates the creation and transfer of fungible tokens through the Ordinals protocol on Bitcoin. However, Rodarmor contended that BRC-20 tokens clutter Bitcoin with “junk” Unspent Transaction Outputs or UTXOs.
“Protocols that are UTXO-based integrate more seamlessly into Bitcoin and encourage UTXO set minimization by preventing the generation of ‘junk’ UTXOs.”
Summary on Runes – A potential fungible token protocol for Bitcoin
:09;ᚢ:22;:46;:34;
— Casey expresses skepticism, noting that “99.9% are scams and memes,” yet acknowledges their persistence.
— Utilizes a UTXO-based framework, significantly simpler than BRC-20.
— Incorporates the letter ‘R’ in the… https://t.co/zYP43f70gh— Franken (@ItsFranken) September 25, 2023
“Should this protocol maintain a minimal on-chain footprint and promote responsible UTXO management, it could act as a harm reduction strategy compared to current protocols,” Rodarmor remarked.
UTXOs signify the amount of cryptocurrency remaining in a wallet after a transaction is completed, with the balance being utilized in future transactions and stored in the UTXO database.
Bitcoin’s UTXO model contributes to making Bitcoin an auditable and transparent ledger by addressing the double spending issue.
Rodarmor mentioned that other fungible token protocols on Bitcoin, including Really Good for Bitcoin, Counterparty, and Omni Layer, have their own challenges.
Rodarmor’s concerns regarding existing fungible token protocols on Bitcoin: Source: Casey Rodarmor.
While Rodarmor acknowledged that 99.9% of fungible tokens are rife with scams and memes, he believes that an effective fungible token protocol could enhance the Bitcoin network:
“Developing a robust fungible token protocol for Bitcoin could generate substantial transaction fee revenue, attract developer interest, and draw users to Bitcoin.”
Related: Ordinals continue to account for the majority of Bitcoin transactions despite price decline
In a Twitter Spaces session on September 25 with The Ordinals Show co-host Trevor Owens, Rodarmor mentioned that he conceived the Runes idea the previous week and was uncertain about pursuing it further.
Shortly after the discussion, Owens proposed a $100,000 offer from the Bitcoin Frontier Fund to potential developers who can establish a Rune application to advance Rodarmor’s proposal.
Open $100k investment offer in the upcoming @BTCFrontierFund accelerator for the first team that can create a functioning (not subpar) Rune indexer, issuance and/or transfer application, live and operational.
Avoid making the tickers mandatory to be unique, as it will create complications.
DM me. Serious offer. pic.twitter.com/6W0IwlhB9x— trevor.btc (@TO) September 26, 2023
Cointelegraph reached out to Rodarmor for a statement but did not receive an immediate reply.
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