Runes
Web3 / cryptocurrency types
Runes is a fungible token protocol for Bitcoin designed by Ordinals creator Casey Rodarmor as a more efficient and elegant alternative to BRC-20. Rather than inscribing JSON data, Runes uses a more compact encoding system that embeds token information directly into Bitcoin's UTXO model, reducing blockchain bloat and transaction costs. This design aligns more naturally with Bitcoin's native architecture and offers better scalability for token transfers. Runes launched in April 2024 and quickly gained adoption as developers and users recognized its technical advantages over earlier token standards. Example: The Runes protocol itself launched with the "RSIC•FEHU" token during Bitcoin's fourth halving event in April 2024, generating significant network activity and demonstrating the protocol's viability at scale. Why it matters for cryptocurrency: Runes enables Bitcoin to efficiently support tokenized assets while minimizing resource waste, making Bitcoin-native tokens more practical for real-world applications and sustainable network growth.
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