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BRC-20 Bitcoin Tokens Surpass $1 Billion Market Cap

On May 9, 2023, BRC-20 Bitcoin tokens reached a significant milestone, with their total market capitalization surpassing $1 billion. This milestone is a testament to the growing popularity of BRC-20 tokens, which employ a novel form of fungible token that uses Ordinals and Inscriptions to create and manage token contracts, token minting, and token transfers on the Bitcoin base chain.

According to analysts at multichain wallet BitKeep, the Ordinals numbering system assigns a unique number to each satoshi, or 0.00000001 Bitcoin (BTC), allowing for its tracking and transfer. On the other hand, the “inscription” process adds a layer of data to each satoshi, enabling users to create unique digital assets on the Bitcoin blockchain. The BRC-20 token standard was developed by a Twitter user known as Domo on March 8, 2022.

Compared to Ethereum, Bitcoin has been lagging in the deployment of token standards, with only a few notable ones like ERC-20 and ERC-721. However, BRC-20 tokens have been gaining traction since its inception, with over 14,000 tokens currently deployed on the Bitcoin blockchain. Despite this progress, Domo, the creator of BRC-20, has openly stated that the standard is “worthless” and that users should not waste money on “mass minting this fun experiment.”

Nevertheless, the growing adoption of BRC-20 tokens by traders and investors has led to a surge in trading volume, with a total trading volume of $207.7 million recorded in the past 24 hours. Notable tokens like ORDI, NALS, VMPX, PEPE, and MEME have experienced significant price variance within the past day, ranging between +11% and -55%.

BRC-20 Tokens Surge in Popularity as Traders Flock to Bitcoin's Latest Token Standard

BRC-20 tokens, the newest token standard on the Bitcoin blockchain, have gained significant traction in the cryptocurrency market. With the total market capitalization of BRC-20 Bitcoin tokens surpassing $1 billion and a trading volume of $207.7 million in the past 24 hours, BRC-20 tokens like ORDI, NALS, VMPX, PEPE, and MEME have emerged as some of the most notable tokens deployed on the Bitcoin blockchain.

Unlike traditional fungible tokens, BRC-20 tokens employ Ordinals and Inscriptions to manage token contracts, token minting, and token transfers on the Bitcoin base chain. This novel approach allows users to create unique digital assets on the Bitcoin blockchain, adding a layer of data to each satoshi, the smallest unit of Bitcoin.

Despite the criticism from the creator of BRC-20 tokens, who openly stated that the standard is “worthless,” traders and investors have been flocking to the token standard due to its potential for innovation and growth. The popularity of BRC-20 tokens has led to a surge in trading volume, with notable tokens like ORDI, NALS, VMPX, PEPE, and MEME experiencing price variance of between +11% and -55% within the past day.

As the adoption of BRC-20 tokens continues to grow, it remains to be seen how this new standard will fare in the highly competitive and rapidly evolving cryptocurrency market. Nonetheless, the development of the BRC-20 token standard highlights the potential of the Bitcoin blockchain to support new and innovative financial instruments beyond its traditional role as a store of value. With the surge in popularity of BRC-20 tokens, it is clear that traders and investors are eager to embrace Bitcoin’s latest token standard and reap the benefits it has to offer.

Bitcoin Ordinals Creator Casey Rodarmor Expands Ecosystem with "Runes"

Key Takeaways

Casey Rodarmor, known for Bitcoin Ordinals, introduces “Runes,” a new fungible token protocol for Bitcoin.

“Runes” aims for a simplified user experience and responsible UTXO management.

The announcement comes after the success of Bitcoin Ordinals, another innovative protocol by Rodarmor that transformed satoshis into NFTs.

Casey Rodarmor, who gained prominence for his creation of Bitcoin Ordinals, has announced a new fungible token protocol for Bitcoin named “Runes.” The announcement was made on September 26, 2023, and quickly gained over 250,000 views. This comes after the success of Bitcoin Ordinals, a system that transformed individual satoshis into non-fungible tokens (NFTs), adding another layer of innovation to the Bitcoin blockchain.

The Genesis of Runes

Rodarmor acknowledges the controversial nature of fungible tokens, describing them as mostly “scams and memes.” However, he believes that a well-designed fungible token protocol could bring “significant transaction fee revenue, developer mindshare, and users to Bitcoin.” Runes aims to offer a more streamlined, user-friendly experience while promoting responsible UTXO (Unspent Transaction Output) management, similar to the user-friendly journeys observed in Bitcoin Ordinals.

Technical Aspects of Runes

Runes is designed to be UTXO-based, fitting naturally into Bitcoin’s existing architecture. It aims to avoid the creation of “junk” UTXOs and does not require a native token for protocol operations. The protocol uses OP_RETURN followed by a data push of the ASCII uppercase letter “R” to contain protocol messages in transactions. Invalid protocol messages result in the burning of the input runes, allowing for future upgrades.

Runes and Bitcoin Ordinals: A Comparative Analysis

While Bitcoin Ordinals focused on transforming satoshis into NFTs based on ordinal theory, Runes aims to simplify the fungible token landscape on Bitcoin. Both protocols reflect Rodarmor’s commitment to innovation within the Bitcoin ecosystem. Bitcoin Ordinals had introduced unique identification and tracking for satoshis, and Runes aims to bring similar levels of innovation to fungible tokens.

Ethical and Practical Considerations

Rodarmor raises ethical questions about the existence of such a protocol. He describes the fungible token landscape as a “near totally irredeemable pit of deceit and avarice” but suggests that Runes might draw users away from less-efficient schemes, thereby benefiting Bitcoin in the long run.

Future Outlook

The introduction of Runes opens up new avenues for discussion within the Bitcoin community. It remains to be seen how the protocol will be received, but its focus on simplicity and efficiency could make it a strong contender in the evolving landscape of Bitcoin-based fungible tokens.

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