Casey Rodarmor, the ingenious mind behind Bitcoin Ordinals, is championing a revolutionary concept – a fungible token protocol like Runes that promises to leave far less digital clutter on the Bitcoin network when compared to the prevailing BRC-20 tokens.
The trailblazing creator of Bitcoin Ordinals is setting forth a novel Bitcoin-based fungible token protocol as a compelling alternative to the existing BRC-20 token standard.
The BRC-20 standard, introduced in March by the enigmatic developer known as “Domo,” experienced meteoric growth, with its market cap soaring to an impressive $1 billion within a mere two months. Notably, PEPE and ORDI emerged as standout BRC-20 tokens within the Bitcoin ecosystem.
BRC-20 empowers users to mint and transfer fungible tokens through the Ordinals protocol on the Bitcoin platform. However, a critical issue with BRC-20 tokens lies in their tendency to inundate the Bitcoin network with what Casey Rodarmor describes as “junk” unspent transaction outputs, or UTXOs.
In a blog post dated September 25, Rodarmor elaborated on the problem, proposing Runes as a UTXO-based alternative. He articulated, “Protocols rooted in UTXOs align more naturally with the Bitcoin infrastructure and actively discourage the creation of ‘junk’ UTXOs.”
He further asserted, “If this protocol can maintain a minimal on-chain presence and promote responsible UTXO management, it could potentially mitigate harm when compared to existing protocols.”
UTXOs signify the residual cryptocurrency within a wallet post-transaction completion, representing the balance available for subsequent transactions and stored within the UTXO database. This model plays a pivotal role in upholding Bitcoin’s auditability and transparency, effectively addressing the double-spending dilemma.
Rodarmor acknowledged the shortcomings of other fungible token protocols on the Bitcoin network, including Really Good for Bitcoin, Counterparty, and Omni Layer. While he conceded that a vast majority of fungible tokens are marred by scams and memes, he firmly believed that the right fungible token protocol could bring tangible value to the Bitcoin ecosystem.
During a Twitter Spaces session on September 25, co-hosted by Trevor Owens on The Ordinals Show, Rodarmor revealed that the concept of Runes had only materialized the previous week, and he remained uncertain about its future development.
Shortly after the discussion, Owens proposed offering a substantial $100,000 from the Bitcoin Frontier Fund to prospective developers who could transform the Runes concept into a functional application, thereby bolstering Rodarmor’s proposal.
Cointelegraph reached out to Casey Rodarmor for comment, but as of now, there has been no immediate response.
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