2024-05-07 19:04:46
After the April 20 halving, everyone expected Bitcoin to grow with more possibilities thanks to Casey Rodarmor’s love project, the Runes fungible token protocol. However, the number of users and prices have started to drop quite quickly since launch. An important argument in favor of Runes was that it was better than the BRC-20 or STAMP protocol, mainly because it required fewer on-chain transactions.
Current Status and Future Vision of Bitcoin Runes
It is also Rodarmor to whom we owe the non-substitutable Ordinal tokens. Created person a FIFO (First In, First Out) agreementwhich allows Bitcoin users to track satoshis, the smallest denomination of Bitcoin. However, while coding his theory, he almost accidentally created an NFT protocol, which quickly became a billion-dollar market. And as many people got rich in the billionaire market, a number of people came to Rodarmor to ask if they needed anything else. Large NFT promoters and speculators have asked Rodarmor to create functionality allowing them to create DOGE or PEPE-like memecoins on Bitcoin.
Rodarmor himself admitted in his founding Runes blog post that he created the fungible token protocol under external pressure. He himself considers 99.9% of these tokens to be scams or simple jokes, but he believes that they constitute a fundamental part of the market. So Rodarmor created it Runes, which allow traders to create fungible tokens and track their ownership using satoshis. Of course, tracking the property using satoshis is mathematically impossible without accepting Rodarmor’s theory of ordinals. According to this, satoshis can somehow be preserved through blockchain transactions with a modified first-in, first-out settlement method.
In fact, all satoshis are completely destroyed and recreated following each Bitcoin transaction. There are no satoshi bytes of data persisting on the Bitcoin blockchain that anyone can track physically or mathematically. Bitcoin’s protocol allows wallet owners to generate new satoshis (technically transaction outputs) every time they create a transaction, as long as they burn the same number of satoshis (transaction inputs). Rodarmor’s ordinal theory is simply an accounting method, among many possible methods, that requires node operators to run their own non-Bitcoin Core software to “track” ownership of satoshis.
The largest Bitcoin rune
Of course, this is an optional option, but many people believe that the protocol offers great opportunities. An anonymous token creator paid 6,732 BTC in the first block of Bitcoin’s fifth halving to “create” ZZZZZZZ-FEHU-ZZZZZZZZZZ. Then he launched a serious campaign under the name “the first Bitcoin rune”. We started website, account and the team behind the token claimed that the market capitalization of FEHU would soon surpass the market capitalization of Dogecoin. Of course, this was just a bloated project, since the founder owned 99% of the entire offering. In this way, he was also able to control the level of market capitalization. But despite this, it did not work. On launch day, one token was trading around $160, which with 99% founder ownership represented a market cap of $17 billion. But today, the price of a token is barely $20, and so its market capitalization has also fallen..
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