The inventors of Bitcoin Ordinals are proposing a new Bitcoin-based alternative token protocol as a potential alternative to the BRC-20 token standard.
The BRC-20 standard was announced in March by anonymous developer Domo. Within two months, BRC-20’s market capitalization reached $1 billion, and the most notable of his BRC-20 tokens created with Bitcoin were PEPE and ORDI. .
A new scary idea has been dropped: runes.
The worse the better, the Bitcoin alternative token protocol.https://t.co/TPVrUvWxm8
— Casey (@rodarmor) September 25, 2023
BRC-20 enables the minting and transfer of alternative tokens via Bitcoin’s Ordinals protocol. However, the problem with BRC-20 tokens is that they spam Bitcoin with “junk” unused transaction outputs or UTXOs, Rodalmor argued.
He said BRC-20 tokens would have “undesirable consequences of UTXO proliferation.” explained In my September 25th post, I suggested Runes as a UTXO-based alternative.
“UTXO-based protocols are a more natural fit for Bitcoin and facilitate the minimization of the UTXO set by avoiding the creation of “junk” UTXOs. ”
Runes TLDR – Potential for a fungible token protocol for Bitcoin
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– Casey remains skeptical, saying it’s “99.9% scams and memes,” but recognizes they don’t seem to be going away.
– It uses a UTXO-based system and is significantly simpler than BRC-20.
– Use the letter “R”… https://t.co/zYP43f70gh— Franken (@ItsFranken) September 25, 2023
“The protocol’s small on-chain footprint and encouraging responsible UTXO management could potentially reduce harm compared to existing protocols,” Rodarmor added.
UTXO represents the amount of cryptocurrency remaining in your wallet after a completed transaction. The balance is used in subsequent transactions and stored in the UTXO database.
Bitcoin’s UTXO model It serves to make Bitcoin an auditable and transparent ledger by preventing double-spending issues.
Rodalmor said other alternative token protocols on top of Bitcoin, such as Really Good for Bitcoin, Counterparty, and Omni Layer, each have their own issues.
Although Rodarmor admits that 99.9% of alternative tokens are filled with scams and memes, he believes that the right alternative token protocols can add value to the Bitcoin network.
“Creating a good fungible token protocol for Bitcoin has the potential to bring significant transaction fee revenue, developer mindshare, and users to Bitcoin.”
Related: Despite the price collapse, ordinals still make up the majority of Bitcoin transmissions
On September 25th, on Twitter Space, “Ordinals Show” co-host Trevor Owens and Rodalmor co-starred. Said He came up with the idea for the runes last week, but said he wasn’t sure if he would pursue it further.
Shortly after the call, Mr. Owens offered $100,000 from the Bitcoin Frontier Fund to any future developer who could create and run a Rune application as a means of furthering Mr. Rodalmor’s proposal.
Opening an investment offer of $100,000 in the future @BTCFrontierFund An accelerator for first teams that can get a working (not terrible) Rune indexer, publishing and/or forwarding app up and running.
Don’t make the ticker unique, it’ll be a crap show.
Please DM me. A serious offer. pic.twitter.com/6W0IwlhB9x
— Trevor.btc (@TO) September 26, 2023
Cointelegraph reached out to Rodalmor for comment, but did not immediately receive a response.
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