Cointime

Cointime

Download App
iOS & Android

Runes: The New Magic of the Ordinals World?

Author: CryptoSherry

September 28, 2023

In the world of cryptocurrencies, innovation never sleeps. It's a realm filled with complex protocols, tokens, and technologies. Amidst this bustling landscape, a new player is emerging – "Runes." But what exactly is Runes, and why is it causing a stir in the crypto community?

In straightforward terms, Runes is a brand-new fungible token protocol meticulously crafted for Bitcoin by none other than Casey Rodarmor, the visionary creator behind Ordinals. But what does that mean? Fungible tokens are, essentially, digital assets that are interchangeable with one another. Think of them as the digital version of traditional currency. What sets Runes apart is how it operates within the Bitcoin ecosystem.

To understand why Runes is generating excitement, we need to look at its differences from existing protocols, notably the widely used BRC-20 in Ordinals World (OW). While BRC-20 tokens are associated with addresses, Runes takes a different approach by embedding token records directly into Bitcoin's Unspent Transaction Outputs (UTXOs).

The challenge with BRC-20 tokens lies in their propensity to generate a surplus of unused or abandoned UTXOs. These often go unnoticed, creating a surplus of them that can strain the operation of full nodes. Runes, however, circumvents this problem by making tokens an integral part of UTXOs. This clever approach resolves the issue of UTXO proliferation, as spending Runes necessitates the consumption of UTXOs, thereby encouraging the streamlining of the UTXO set.

Furthermore, Runes takes a bold leap by doing away with the need for a native token. In contrast to some other protocols where a native token is mandatory for specific operations, Runes eliminates this requirement, streamlining the entire process and making it accessible to a broader user base. This approach aligns perfectly with Bitcoin's ethos of simplicity and decentralization.

Casey Rodarmor's introduction of Runes brings a fresh perspective to the world of fungible tokens in the Bitcoin ecosystem. One of the pivotal decisions behind Runes was to utilize the OP_RETURN script opcode instead of alternative methods, such as meta protocols like Ordinals.

The rationale behind this choice is grounded in practicality. OP_RETURN offers a clear advantage when it comes to certain complexities associated with fungible tokens. Unlike some other methods, OP_RETURN simplifies swaps and Partially Signed Bitcoin Transactions (PSBTs). It accomplishes this by ensuring that signatures encompass all the data determining asset movement within a transaction. This streamlined approach removes the need for commit and reveal processes, allowing for a more efficient, single-step issuance of transfers.

While OP_RETURN provides these significant advantages, it also brings the benefit of independence from the Ordinals protocol. This separation simplifies development, ensuring that Runes can evolve independently without being tethered to another protocol. Such autonomy can facilitate quicker progress and adaptation to user needs, unencumbered by dependencies on other systems.

So, what does Runes mean for Bitcoin's future?

In the unveiling of Runes, Casey candidly emphasizes a blunt reality: the world of fungible tokens is often fraught with scams and meme-driven projects. Nevertheless, he acknowledges that these tokens are unlikely to disappear, much like the enduring presence of casinos. In light of this, Casey offers a fresh perspective—Combating magic with magic.

Perhaps these "less-than-ideal" tokens, often referred to as the "altcoin casino," could serve a purpose within the crypto ecosystem. By contributing fees to fortify Bitcoin's infrastructure, they could play a role in reinforcing the very bedrock of digital currency.

Runes may be the breath of fresh air that Bitcoin needs. It offers a simpler, UTXO-based fungible token protocol with a promising user experience. While the world of fungible tokens may be a complex maze, Runes stands out as an exciting development that could benefit Bitcoin's ecosystem. As Casey embarks on developing Runestone, an implementation of Runes, the crypto world eagerly awaits its full realization. It's a testament to the ever-evolving nature of the cryptocurrency space, where innovation knows no bounds. Stay tuned for further updates on the journey of Runes, the new luminary in the Bitcoin cosmos.

Comments

All Comments

Recommended for you

  • A British court has postponed the final sentencing of Wen Jian, a British-Chinese national involved in the country's largest Bitcoin money laundering case, until May 24.

    On May 11th, it was reported that Jian Wen, a 42-year-old British Chinese citizen, was found guilty of "participating in arranging money laundering" in the UK's largest Bitcoin money laundering case. He could be sentenced to up to 14 years in prison. Jian Wen's defense lawyer, Mark Harries, stated that due to the judge's busy schedule, the UK court has postponed Jian Wen's final sentencing, which was originally scheduled for May 10th, to May 24th.

  • Web3 startup Star Nest completes $6 million in Pre-A round of financing

    Hong Kong Web3 music startup Star Nest announced that it has completed a $6 million Pre-A round of financing, led by Chuangqi International Limited, a wholly-owned subsidiary of Hong Kong Stock Exchange-listed company Guofu Innovation. Star Nest will collaborate with Armonia Meta Chain to develop the Star Nest SpaceStar metaverse game, which includes music, role-playing, and social features.In addition, Star Nest plans to launch its NEST project in the third quarter of 2024. Nest will receive 2.1 billion NEST tokens tailored for the project, and Star Nest will use the NEST token to build a more complete music industry token economic system. The NEST token will be widely used for purchasing performance tickets, chain game cooperation, metaverse consumption, governance voting, and other activities.

  • Over $594 million worth of PYTH is staked

    According to Dune data,  there are currently 1,201,167,362 PYTH tokens in the staked state, with a total staked value exceeding $594 million. The number of PYTH stakers has reached 151,211.

  • US Department of Justice: Tornado Cash indictment has nothing to do with "free speech"

    On May 11th, the US Department of Justice explained why the motion to dismiss the criminal case against Tornado Cash founder Roman Storm was invalid. The Department of Justice reiterated that their indictment was not related to whether the Tornado Cash computer code had freedom of speech or was protected by the First Amendment of the Constitution. The defendant was not charged for publishing computer code, but for using it to facilitate profitable illegal activities.

  • USDC circulation decreased by $100 million in the past week, with a total circulation of $33 billion

    According to official data，as of May 9th, Circle has issued approximately $2 billion USDC and redeemed approximately $2 billion USDC in the past 7 days, with a decrease in circulation of approximately $100 million. The total circulation of USDC is $33 billion, with a reserve of $33.1 billion, including approximately $3.3 billion in cash and Circle Reserve Fund holding approximately $29.8 billion.

  • SEC rejects Coinbase's request for appeals court ruling on cryptocurrency rules

    The US SEC has rejected Coinbase's request to appeal to the court to review whether traditional securities rules are applicable to cryptocurrencies. In its application, Coinbase stated that it hoped the appeals court would consider whether the Howey test, which has long been used for securities evaluation, should be applied to digital assets. However, the SEC pointed out that Coinbase has not successfully demonstrated the need for such an evaluation. The SEC stated that Coinbase is attempting to create a "new legal test," but this attempt was rejected by the court. The court found that Coinbase's arguments lacked consistency and did not successfully demonstrate the existence of decisive issues. Currently, the judge responsible for hearing the SEC's case against Coinbase will make a ruling on Coinbase's intermediate appeal motion.

  • Colombian President Suspected of Accepting $500,000 in Illegal Crypto Donations

    Colombian President Gustavo Petro is suspected of accepting over $500,000 in digital token donations from a fraudulent cryptocurrency project during his 2022 election campaign. A former contractor revealed that the illegal donation occurred during a meeting in February 2022 that discussed the advantages of cryptocurrency and the possibility of working with the government. This allegation is one of the latest charges faced by President Petro during his election campaign, with the Colombian Prosecutor's Office investigating his campaign last year.

  • Fed's Kashkari: The bar for another rate hike is high, but it cannot be ruled out

    The Federal Reserve's Kashkari expressed a cautious attitude towards restrictive monetary policy; he is adopting a wait-and-see attitude towards future monetary policy; he is in a wait-and-see state to see if inflation is stagnating; the threshold for raising interest rates again is high, but this possibility cannot be ruled out; if inflation data supports it, the Fed will maintain interest rates.

  • The address that defrauded 1,155 wBTC has returned more than 96% of the funds to the victims

    Blockchain data shows that the address poisoning attacker lured users to send 1,155 Wrapped Bitcoins (wBTC) (valued at $68 million at the time) to them. The attacker has returned almost all of the stolen funds. These funds were exchanged for Ethereum (ETH) during the attacker's holding period, and the price of ETH has since fallen. However, the attacker returned about 22,960.07 ETH, worth about $65.7 million, which accounts for over 96% of the initial stolen funds in terms of US dollar value.

  • TrumpAI tokens on Ethereum have been RUG

    PeckShield has monitored that the TrumpAI token on the Ethereum blockchain has fallen by 100%. An address starting with 0x935A sold 5,000,000,000,000,000,000,000 TrumpAI tokens, which is about 26.57 WETH (approximately $80,000). Note: rugpull tokens have the same name as legitimate tokens.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company