The year 2024 appears to be heralding an exciting time for the Bitcoin ecosystem. From a Bitcoin ETF being approved for trading in the US this January to its recent halving event – there is a lot going on in the Bitcoin space. In another latest development, a new name has joined the Bitcoin family. Called Bitcoin Runes, it is an innovative protocol created to address issues associated with Bitcoin-based token systems that rely on off-chain data and native tokens used for operations.
Bitcoin Runes made its debut in the crypto sphere on April 20 – sharing its launch date with Bitcoin’s fourth halving event. Runes is created by Casey Rodermer, who also created the now popular Ordinals protocol for BTC-based NFTs.
The purpose of bitcoin runes Allegedly Increase the management of unspent transaction output or UTXOs on the Bitcoin blockchain. UTXO is a fraction of Bitcoin value tied to a specific address on the blockchain that represents the amount of money that has not yet been spent.
The protocol is able to directly utilize Bitcoin’s native functionality to reduce blockchain fluff and improve the user experience. In doing so, Runes will ensure that each unit of Bitcoin that is part of the transaction is properly accounted for. With this, any possibility of currency counterfeiting is eliminated, making all transactions mature with transparency and integrity at the time of minting. Rodermore has been keeping followers on X updated on the benefits associated with the runes.
One advantage of Runes vs BRC-20 is that if you have a UTXO that has some amount of Runes, you can create multiple PSBTs offering to sell different amounts of those Runes from the UTXO, with runestones that Transfer and return different amounts to the buyer. Remanent…
– Casey (@rodarmor) 21 April 2024
The introduction of Runes is expected to expand the types of tokens that can support the Bitcoin blockchain, and may increase Bitcoin’s overall utility quotient. Additionally, the Runes Protocol will simplify the process of creating NFTs based on the Bitcoin blockchain.
Runes is launched Allegedly Also contributed to fluctuations in transaction fees.
Medium-priority transactions now cost $8.48 (roughly Rs. 705), while high-priority transactions cost $9.32 (roughly Rs. 775), transaction fees on the Bitcoin blockchain have increased. Allegedly Marked a significant decline from previous metrics. Before the halving and launch of Runes, BTC transaction prices were $146 (approximately Rs 12,167) for medium-priority transactions and $170 (approximately Rs 14,167) for high-priority transactions.