Original author: Jasmine, Ordinals community user (X: @@Jasmine 9 m 88 ）
Casey, the founder of the Ordinals and Runes protocols, introduced in detail for the first time the fungible token protocol Runes, which will be launched on the occasion of the Bitcoin halving in April, in the latest episode of hellmoneypod.
Watch what Casey talked about in 2 minutes (Alpha at the end)
1. What are Runes?
Runes is a protocol for issuing fungible tokens on the Bitcoin network. In Caseys words, Runes does not issue junk coins, but only provides a place to issue junk coins. The core of the protocol is based on #UTXO and has a very simple design.
2.What does it mean that Runes is based on UTXO?
UTXO stands for Unspent Transaction Output. In the Bitcoin network, during the transaction process, some existing inputs need to be selected and consumed to generate new UTXOs, which can then be used as inputs for future transactions.
Runes are based on UTXO, which means that the transaction output can not only contain Bitcoin, but also different quantities and types of Runes. For example, a transaction output can contain 1 Bitcoin, 100 A Runes and 1000 B Runes at the same time.
3. How to issue (etch) a new Rune?
The issuance process of Rune tokens is called etching. The name of each Rune is unique and can be composed of the uppercase letters AZ and the • symbol.
In order to balance the release rhythm of Rune and prevent the popular and short name Rune from being quickly occupied in the early stage, the Runes protocol requires the name to be at least 13 letters in length during the first four months of launch, such as PEPE•IS•AWESOME.
Thereafter, approximately every four months, the minimum name length decreases by one letter until the next halving event, when single-character Runes (26 in total) can be created.
Runes issuance adopts a Commint-Reveal mechanism to prevent miners from learning the name of Rune in advance and jumping the gun.
The unit of Rune tokens can be traditional monetary units, such as $, or any Unicode emoticon. This design makes Rune tokens more interesting and personalized, such as 100 PEPE•IS•AWESOME
4. How to transfer Runes?
Although Casey is the founder of Ordinals, Runes is not based on the Ordinal protocol. When performing Runes transfers, the ordering of inputs and Sats is not critical, but the ordering of outputs directly affects the result of the transfer. Normally, in a transaction, Runes from all inputs are transferred to the first output by default. However, by constructing the OP_Return output, it is possible to direct Runes to a specific output.
What is the OP_Return output?
OP_RETURN is an opcode in the Bitcoin transaction scripting language that marks a transaction output as unspendable, while allowing up to 80 bytes of arbitrary data to be embedded on the Bitcoin blockchain. Therefore, the OP_Return output can be considered an output type used only for carrying data and not for transactions.
How do I transfer money to a specific output or address?
Theoretically, if the output does not contain an OP_Return or contains no data in the OP_Return, all Runes will be transferred to the first non-OP_Return output by default. For example, suppose you have 100 A Runes and want to transfer 25 to Xiao Ming while retaining 75. At this time, you can set the first output of the transaction to OP_Return, the second output to set your own address, and the third output to Xiao Mings address. Indicate in OP_Return that you want to transfer 25 Runes to the third output (that is, Xiao Mings address), then the remaining 75 Runes with unspecified receiving addresses will automatically be transferred to the first non-OP_Return output (that is, your own address).
5.Runes is compatible with SPV wallet
Students who develop Runes wallets, please note:
The SPV (simple payment verification) wallet is a lightweight Bitcoin wallet that only downloads and verifies the block header data related to user transactions instead of downloading the entire blockchain. Users can use the SPV wallet to manage and use Rune tokens and enjoy a light, simple and fast transaction experience.
6.Brc 20 vs Runes
Casey believes that the key to the success of Brc 20 is that it pioneered the open mint model, giving everyone the opportunity to participate in the casting process. Casey recognized the success of Brc 20 and said that Runes should learn from its advantages while avoiding its technical shortcomings (mainly the problem of garbage UTXO expansion).
7. What Alphas are there?
Rune provides two issuance methods: fixed total amount (project parties can pre-mine) and Open Mint (fair launch, project parties cannot pre-mine). Casey believes that the current market is filled with various speculations, vying to be the first Rune, and the first Rune will become Schelling Point (Rhythm BlockBeats Note: Schelling Point refers to the behavior of people without communication in game theory. choice tendency).
In order to prevent the first Rune from being snatched or pre-mined by VCs or project parties, Casey decided to hardcode the first 10 Runes (Rune 0 - Rune 9) into the Runes protocol, which only supports open mint, so that everyone can participate fairly Among them, play together.
Currently, he is soliciting interesting and memeble token names, units, and minting rules from the community. Here Casey mentioned several names that he thinks are interesting, such as COMMUNISTRUNE, ANARCHISTRUNE, CYPERPUNKRUNE and so on.
Friends with big ideas and good meme skills may wish to give their opinions and submit the form here. https://docs.google.com/forms/d/e/1FAIpQLSd9etAFSzDzSQFHlLDJJMyv_LLnjaUCqWtyQxNCv8SeuUbsug/viewform
Finally, Casey said bluntly that 99.9% of homogeneous tokens are scams. Don’t pretend to change the world. Frankly admit that this is an industry full of gambling and speculation. Treat everyone with sincerity. all good. ITS JUST FOR FUN!
Disclaimer: This article is for informational purposes only and may not be relied upon as legal, tax, investment, financial, or any other advice.
