The halving is scheduled for April 19-20, 2024, and many crypto enthusiasts are eagerly preparing for Rune Protocol. This rune concept was developed by Ordinals creator Casey Rodarmore and has been greeted with great enthusiasm since its announcement in September 2023. Below is a detailed overview of what you can expect from this highly anticipated protocol.
Bitcoin welcomes Runes: new standard set of fungible tokens launched
Six months ago, Casey Roddermore, the originator of Bitcoin's order theory, unveiled the Rune Protocol in a blog post. He expressed uncertainty whether developing a new Bitcoin protocol that would allow for the creation of fungible tokens was a good idea, but that it would generate significant revenue from transaction fees and would attract developer interest. acknowledged that it has the potential to increase Bitcoin's user base.
Basically, Rune Protocol serves exactly this purpose. It is a token standard based on Bitcoin that facilitates the issuance of fungible tokens, with the aim of providing users with an easy way to create fungible tokens. Some may point out that BTC already has a token standard, but his BRC20, developed by Domo, sets Rune apart on its own. An Unspent Transaction Output (UTXO) model is used, as opposed to the account-based model used by BRC20 tokens.
This crucial difference allows Runes to work more closely with Bitcoin's underlying architecture. Rodarmore's blog post clearly explains how the runes of this system function as digital units housed in his UTXO. UTXO is basically a vault where you can store different numbers and types of runes. Transactions contain special scripts that refer to protocol messages (OP_RETURN and marked with the letter "R") that control the transfer or creation of runes.
Such transactions use strings of numbers to detail the rune ID, the output of the transaction being assigned, and the number of runes being transferred. Unlike BRC20 and other non-UTXO systems that require additional components (such as native code or sequence number theory), RONES achieves simplicity by using direct transaction scripts to manage and distribute digital units.
The protocol is scheduled to launch at the same time as the halving and is currently being tested on the Bitcoin testnet. Social media platform user He said that this person has high testnet fees and his SATOSHI market for testnet has emerged. Based on the initial interest seen so far, he expects Bitcoin fees to rise as people start mining runes.
“If people start mining after 840,000 blocks on mainnet, and can mine after 840,006 blocks on mainnet (6 confirmed blocks after halving), I wouldn't be surprised if commission rates reach triple digits for an extended period of time.” X Cryptoquick said.. "The fact that there are people willing to pay exorbitant amounts of money to do this on testnet shows the potential popularity of Rune like never before. The next few weeks are going to be crazy..”
Expectations for Luna had been high for some time. At the end of January 2024, Tristan, the founder of Ordiscan.com, also explained that he expected great demand for the new Runes protocol. The Ordiscan founder noted at the time that we were already starting to see some teams promoting their upcoming token as “The First Rune.” BRC20 itself has generated significant value, and his BRC20 market capitalization of these types of tokens is currently $2.4 billion.