The Bitcoin network is witnessing a significant development with the launch of Runes, a new standard for fungible tokens, coinciding with the highly anticipated fourth Bitcoin halving.
Runes, created by Casey Rodarmor, the developer behind Ordinals, aims to provide a more efficient and compatible alternative to the existing BRC-20 token standard.
TLDR
Runes, a new standard for fungible tokens on Bitcoin, launches on the same block as the halving (block #840,000).
Runes are an alternative to BRC-20 tokens and do not depend on the Ordinals inscription mechanism.
Runes are compatible with the Bitcoin Lightning Network, potentially offering faster and cheaper transactions.
Bitcoin miners have made $107 million in profits, with 75% coming from transaction fees, largely due to the Runes minting activity.
The RUNE protocol has gained significant attention, with minters spending over 80 Bitcoins in fees and achieving 20,000 holders.
Unlike BRC-20 tokens, which rely on the Ordinals inscription mechanism, Runes operate directly on the Bitcoin blockchain without the need for off-chain indexers.
This streamlined approach is expected to offer several advantages, including faster and cheaper transactions, as well as seamless integration with the Bitcoin Lightning Network.
The launch of Runes on block #840,000, the same block as the halving, has generated significant buzz within the crypto community. The halving, a quadrennial event that reduces the block reward for miners, is a crucial milestone in Bitcoin’s deflationary monetary policy.
By aligning the launch of Runes with this event, Rodarmor has effectively capitalized on the heightened media attention surrounding Bitcoin.
LIVE NOW – Runes: The Frontier of Bitcoin
w/ Casey @rodarmor
Casey is the creator of the Ordinals Protocol, a harmless protocol that simply allowed for arbitrary data to be inscribed into individual Bitcoin UTXOs, creating Bitcoin NFTs
He is now also the creators of Runes, a… pic.twitter.com/o27xoKQ6dw
— Bankless (@BanklessHQ) April 18, 2024
The impact of Runes on the Bitcoin network has been immediate and substantial. Bitcoin miners have collectively reaped $107 million in profits, with an astonishing 75% of this revenue derived from transaction fees.
This surge in profitability is largely attributed to the Runes minting activity, which has seen minters spend over 80 Bitcoins in fees to acquire these tokens.
The enthusiasm surrounding Runes is evident in the rapid adoption of the protocol. Within a short period, the RUNE protocol has amassed 20,000 holders, underscoring strong demand for this new token standard.
The potential for Runes to significantly benefit Bitcoin’s fee economy in the long run has further fueled the optimism surrounding this development.
The launch of Runes has also had a positive impact on the price of THORChain’s RUNE token.
The RUNE price has experienced a bullish reversal, recording a 20% increase within 24 hours of the Runes launch. While the token has seen some correction over the past week and month, the overall sentiment remains positive, with technical indicators suggesting a bullish outlook for the altcoin.
The introduction of Runes marks a significant milestone in the development of fungible tokens on the Bitcoin blockchain.
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