Xverse Wallet has unveiled an extensive guide shedding light on Bitcoin Runes, offering valuable insights into optimizing token management on the Bitcoin blockchain post-halving.
According to Xverse Wallet’s guide, Runes are fungible tokens built on the Bitcoin (BTC) blockchain using the innovative Runes protocol. Originally introduced by Casey Rodarmor last year, Runes serve as a streamlined alternative to the conventional BRC-20 standard.
The Runes protocol aims to address network congestion issues by preventing the accumulation of unnecessary UTXOs (Unspent Transaction Outputs). Since its inception, Runes have garnered robust support from the community, leading to the immediate issuance of the first Rune token, RUNE, alongside significant developments such as grants and the introduction of a new issuance tool.
As the Bitcoin halving event draws nearer, anticipation surrounding the Runes ecosystem continues to mount. The guide underscores the proactive efforts of Bitcoin builders in preparing the necessary infrastructure for Runes tokens, highlighting the burgeoning interest and development within the sector.
Notably, Runes marketplaces and launchpads like Magic Eden and BitX enable users to trade and launch various Rune-related tokens. Additionally, platforms such as Fluid Tokens are actively developing decentralized applications tailored for lending runes, reflecting the ecosystem’s expanding functionality and utility.
The guide emphasizes Runes’ minimal on-chain footprint and its ability to enhance overall efficiency compared to BRC-20 tokens derived from Ordinal Theory, which are not native to Bitcoin and contribute to network congestion through UTXO proliferation.
Operating on Bitcoin Layer 1 and integrating Bitcoin’s UTXO model, the Runes protocol facilitates seamless interaction with the base blockchain while mitigating excessive UTXO production. Unlike BRC-20 tokens, Runes impose penalties for errors by burning tokens, promoting responsible UTXO management.
Furthermore, many Ordinal and BRC-20 projects offer investors and holders the opportunity to acquire Runes through a runic miner, enabling them to invest in this innovative technology ahead of its official launch. For instance, Runestone, a BRC-20 project, recently airdropped 100,000 tokens to the Ordinals community, currently valued at 0.078 BTC floor, equivalent to $5,100, providing holders with the opportunity to accumulate Runes.
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