The inventor of Bitcoin Ordinals, Casey Rodarmor, is proposing a brand new Bitcoin-based fungible token protocol as a possible various to the BRC-20 token commonplace. Casey Rodarmor talked about {that a} fungible token protocol like Runes wouldn’t depart as a lot “junk” on the Bitcoin community as that of BRC-20 tokens.
The BRC-20 commonplace was launched by nameless developer “Domo” in March. The BRC-20 market cap reached $1 billion inside two months, with notable BRC-20 tokens like PEPE and ORDI being created on Bitcoin.
New horrible concept simply dropped: Runes.
A worse-is-better fungible token protocol for Bitcoin.https://t.co/TPVrUvWxm8
— Casey (@rodarmor) September 25, 2023
BRC-20 permits the minting and switch of fungible tokens by way of the Ordinals protocol on Bitcoin. In an announcement, Rodarmor talked about that BRC-20 tokens have the problem of spamming the Bitcoin community with “junk” unspent transaction outputs (UTXOs), regardless of their potential.
In a Sept. 25 weblog submit, he defined that BRC-20 tokens have the “undesirable consequence of UTXO proliferation,” proposing Runes as a UTXO-based various.
https://rodarmor.com/weblog/runes/
TLDR on Runes – A possible fungible token protocol for Bitcoin
ᚱᚢᚾᛖᛊ
– Casey stays skeptical, citing “99.9% are scams and memes,” however recognises they do not look like going away.
– Employs a UTXO-based system, notably less complicated than BRC-20.
– Makes use of the letter ‘R’ within the… https://t.co/zYP43f70gh— Franken (@ItsFranken) September 25, 2023
Rodarmor added; “If this protocol had a small on-chain footprint and inspired accountable UTXO administration, it would function hurt discount in comparison with present protocols,”.
UTXOs signify the quantity of cryptocurrency left in a pockets following a accomplished transaction, the place the stability is utilized in subsequent transactions and is saved within the UTXO database.
Bitcoin’s UTXO mannequin contributes to creating Bitcoin an auditable and clear ledger by stopping the double-spending drawback.
“Different fungible token protocols on Bitcoin, reminiscent of Good for Bitcoin, Counterparty, and Omni Layer, have issues of their very own” Rodarmor said.
Whereas acknowledging that 99.9% of fungible tokens are related to scams and memes, Rodarmor believes the proper fungible token protocol can add worth to the Bitcoin community:
“Creating a very good fungible token protocol for Bitcoin would possibly carry vital transaction charge income, developer mindshare, and customers to Bitcoin.”
Rodarmor talked about that he got here up with the thought for Runes simply final week, and through a Sept. 25 Twitter Areas session with co-host Trevor Owens from The Ordinals Present, he expressed uncertainty about whether or not he would additional pursue it.
Shortly after the decision, Owens floated providing $100,000 from the Bitcoin Frontier Fund to potential builders who can get a Rune software up and working as a method to additional Rodarmor’s proposal.
Open $100k funding supply in upcoming @BTCFrontierFund accelerator for first workforce who can get a working (not horrible) Rune indexer, issuance and/or switch app, up reside and working
Do not make the tickers required to be distinctive, will probably be a shit present
DM me. Severe supply. pic.twitter.com/6W0IwlhB9x
— trevor.btc (@TO) September 26, 2023
