What are Bitcoin Runes?
Bitcoin Runes is a new token standard on the Bitcoin blockchain that simplifies the creation and management of fungible tokens¹. Here are some key points about Bitcoin Runes:
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What are they? Runes is a protocol that makes it easier and more efficient for users to create fungible tokens on the Bitcoin blockchain¹. It’s a UTXO-based fungible token protocol for the Bitcoin network³⁴.
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How do they work? By using Bitcoin’s UTXO model and the OP_RETURN opcode, Runes simplifies the creation and management of fungible tokens¹. It’s designed to integrate smoothly with Bitcoin’s existing structure and transaction processing rules⁵.
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Why were they created? The aim of Runes is to improve Bitcoin’s efficiency around fungible tokens and expand the Bitcoin network’s utility to appeal to a wider audience¹. This includes making it easier to create meme coins and other community-driven projects on the blockchain¹.
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Who created them? Runes was created by Casey Rodarmor, the creator of the Ordinals protocol that lets users create NFT-like inscriptions on the Bitcoin blockchain¹.
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When were they launched? Runes was released following the fourth Bitcoin halving, which took place on 20 April 2024¹.
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What’s their impact? The most popular Rune by market cap at the time of writing was RSIC•GENESIS•RUNE, with a market cap of over $325 million¹. The launch of Runes also sent Bitcoin transaction fees soaring to new heights on the day of launch¹.
In essence, Bitcoin Runes are a significant step in the evolution of the Bitcoin ecosystem, enabling the creation of fungible tokens directly on the Bitcoin network².
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