‘The new $10 billion protocol’: Bitcoin developer explains the unique characteristics of Runes
Runes have emerged as a new narrative in the crypto ecosystem, utilizing the infrastructure of the Bitcoin blockchain. Within less than a week, the total market cap for this sector has reached $346 million, according to RunesMarketCap. However, despite its rapid growth, many investors are still unfamiliar with the concept of Runes.
Punk 686, a member of the Bitcoin Virtual Machine (BVM), shed some light on this new fungible token standard. Developed by Casey Rodarmor, the creator of the Ordinals Protocol, Runes simplifies the process of creating fungible tokens on Bitcoin compared to other methods like BRC-20. This simplified approach can potentially reduce the technical barrier, encouraging more builders to utilize the Bitcoin ecosystem.
Runes has gained significant attention within the BTC community, becoming the hottest narrative in recent months. Unlike when the Ordinals Protocol launched with no tools or infrastructure, Runes has witnessed the development of numerous pre-launch projects and a well-organized community. This level of interest suggests that many are anticipating Runes to become the next “$10 billion protocol.”
To support the Runes protocol, BVM has been building infrastructures, including a dedicated blockchain known as RuneChain. This blockchain aims to address fee issues associated with Runes minting and trading. Cryptokoryo’s Dune Analytics dashboard shows that over $136 million worth of Bitcoin (2,137 BTC) has been paid in Runes-related fees. Through RuneChain, the BVM team envisions the development of a decentralized finance (DeFi) ecosystem.
RuneChain will feature a permissionless Runes trading decentralized exchange (DEX) with a 2-second block time and a transaction fee of $0.001. It aims to be the decentralized equivalent of Binance for the Runes ecosystem. Additionally, users can expect features commonly found in the DeFi ecosystem, such as Rune Staking and Rune Lending, reminiscent of the Ethereum infrastructure.
While Runes is still in its early stages, the excitement surrounding RuneChain and the Runes ecosystem as a whole suggests a promising journey ahead.