Discover the Runes Token Protocol on Bitcoin Network
Welcome, crypto enthusiast! The Bitcoin halving has come and gone, and along with this significant event, the new Runes token protocol has gone live on the Bitcoin network. Since its launch on April 20, the Runes protocol has witnessed the creation of over eight thousand “etchings”—the preferred term for deploying Runes tokens—on the Bitcoin blockchain, according to Ordinals and Runes launchpad Luminex.
The Emergence of Long-Format Names
One interesting trend that quickly emerged among these new digital assets is the use of long and uniquely formatted names. A quick scan of the nascent category on exchanges like Magic Eden reveals tokens with labels like “SYMPATHETIC•PARAMUTUALISM” and “WANKO•MANKO•RUNES.”
- Why are the names so long?
The names of Runes, usually displayed in all caps, may seem peculiar, but creators have a valid explanation. A minimum name length is ingrained in the Runes protocol to prevent what is known as name squatting. This practice involves registering a name that is generally recognized as a brand or trademark by others with the intention of profiting from its recognized value.
- “[The name requirement] started long, and it then goes short,” said OrdinalsBot co-founder Brian Laughlan.
Despite this restriction, someone has managed to etch a Rune called THE•NEW•YORK•TIMES—without any apparent affiliation with the renowned newspaper publication. The protocol’s rules dictate that the minimum number of letters decreases by one character every 17,500 blocks, leading to a more dynamic naming environment.
Understanding the Runes Protocol
According to the Ordinal Theory Handbook by Casey Rodarmor, a Rune’s name must be between 1 and 28 characters long, utilizing the letters A to Z. Names must be unique, regardless of spaces, which means ‘UNCOMMON•GOODS’ and ‘UNCOMMONGOODS’ are considered identical. Additionally, a Rune cannot be etched with the same letter sequence as an existing Rune, even if the spacing differs.
- “Runes come into existence by being etched,” the documentation explains.
Bitcoin Ordinals developer Casey Rodarmor introduced the Runes protocol in September, touting it as a pathway to fungible tokens on the top blockchain by market capitalization. Runes aim to address several issues associated with last year’s BRC-20 token standard, including wasted block space. While Runes and BRC-20 tokens may appear similar to casual observers, the distinctions will become clearer over time, according to Ken Liao, CEO of the Bitcoin wallet Xverse.
- “One thing people have been saying is that Runes have the same issues as BRC-20 when it comes to trading,” Liao shared.
Hot Take: The Future of Runes Tokens
Welcome back, crypto enthusiasts! As the Runes protocol gains traction in the crypto space, it is evident that this innovative token system offers unique advantages and addresses key challenges faced by existing token standards. With its dynamic naming system, focus on preventing squatting, and commitment to enhancing blockchain efficiency, Runes are poised to differentiate themselves in the market and carve a niche in the ever-evolving blockchain landscape. Stay tuned for further developments and enhancements as the Runes ecosystem matures and establishes its presence in the crypto sphere!
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