🎞️Background

·What is Runes?

Runes introduces a groundbreaking fungible token standard to the Bitcoin ecosystem, aimed at revolutionizing how digital assets are traded and managed. Created by developer Casey Rodarmor, Runes is designed to mitigate the challenges associated with the current Bitcoin token standard, BRC-20, which includes the creation of surplus "junk" UTXOs. These unspent transaction outputs (UTXOs) clog the network, hindering efficiency and user experience.

·What is Runes Protocol?

The Runes Protocol offers a new token standard for issuing fungible tokens on Bitcoin, focusing on a more efficient and streamlined process. This protocol utilizes a UTXO-based approach to minimize the unnecessary creation of UTXOs, addressing network congestion issues prevalent with the BRC-20 standard.

Debuting in September 2023 and set for mainnet launch during the Bitcoin Halving at block 840,000 in April 2024, the Runes Protocol leverages runestones—messages stored in transaction outputs, limited to one per transaction. This design is tailored to enhance the efficiency of the Bitcoin network by reducing its on-chain footprint and simplifying token management.