Bitcoin Runes mark a notable advancement in Bitcoin blockchain functionality, offering a fresh approach to generating fungible tokens. Crafted by Casey Rodarmor, the mastermind behind Bitcoin Ordinals, Bitcoin Runes aim for improved efficiency, resource conservation, and seamless integration with Bitcoin’s UTXO (Unspent Transaction Output) model

In April 2024, coinciding with a Bitcoin halving event, Bitcoin Runes were introduced to address the limitations of previous token standards like BRC-20 on the Bitcoin blockchain. Earlier protocols faced criticism for inefficiency and imposing significant network load.

Bitcoin Runes leverage the UTXO model of the Bitcoin blockchain, avoiding the generation of unspendable UTXOs that contribute to blockchain bloat. Tokens in the Runes system are issued and managed through a 'genesis' UTXO, recording essential details like the token's name, symbol, and total supply. These tokens can be divided and transferred while retaining their fungibility.

The advent of Bitcoin Runes offers diverse applications, particularly in creating and managing memecoins and other fungible tokens more efficiently on the Bitcoin network. Additionally, being compatible with the Lightning Network, Runes can foster new forms of decentralized finance (DeFi) on Bitcoin, potentially expanding the platform's user base.

Despite their advantages, Bitcoin Runes may encounter challenges such as symbol squatting, akin to URL squatting on the internet, where individuals reserve desirable token symbols without actual usage, potentially leading to complications.

Interacting with Runes requires specialized services as standard Bitcoin wallets do not display additional transaction information and their UI is not adapted to the protocol. To perform any operations, a specialized service is needed.

The most versatile option is Xverse, available as a mobile app or browser extension, supporting multiple token standards on the Bitcoin network built on Runes, Ordinals, and Stacks protocols.

You can also consider UnisatWallet and OKX wallet, as they support both Runes and tokens based on Ordinals.

To track new collections and create, mint, and transfer "runes," you can use the Luminex service. Simply connect a compatible wallet to access all essential operations.

Tokens issued can be listed for sale on specialized trading platforms:

UniSat, once popular as one of the first trading services for Ordinals, now also supports tokens based on Runes.

OKX Web3 is the trading platform of the eponymous cryptocurrency exchange, supporting both Runes and Inscriptions.

MagicEden, formerly the largest NFT marketplace in the Solana ecosystem, is now a cross-chain platform for NFT trading.

It's important to note that the Runes market is highly fragmented, so liquidity, trading volumes, and prices may differ across platforms. Before conducting any transactions, it's advisable to assess available offers on multiple platforms.

Runes Dashboard

**🔗 Dune

Rodarmor intends to implement direct trading between users in the near future. This could reduce reliance on centralized cryptocurrency exchanges and address the issue of Replace-By-Fee (RBF). RBF involves replacing a previous unconfirmed transaction with a new version containing a higher transaction fee, aiming to incentivize miners to prioritize transactions with higher fees.

Moreover, Rodarmor anticipates that with the approval of the OP_CAT Bitcoin Improvement Proposal (BIP), it will become feasible to bridge Runes tokens to Layer 2 networks. He predicts that this BIP will be introduced to Bitcoin within the next year. OP_CAT is an operation code (opcode) in the original Bitcoin script, where "CAT" stands for "concatenate," allowing two elements in a script to be combined. Satoshi Nakamoto disabled this opcode to prevent DoS attacks.

✅ That’s all!

🌐 FOLLOW OUR SOCIALS

✨ Collect this entry showing your support to our team! More collects-more guides!