💰 Runes MARATHON. PART 1

Alright guys, a deep thread with detailed explanation how to setup Bitcoin Node for Runes is done on 80%

But before that, I want to explain in details which advantages of these Runes in compare with BRC-20

IMPORTANT! In this post I will just tell you about its Advantages, but detailed overview in simple words will be done only in 8-10 hrs. So, if you can't wait anymore, you can read about it anywhere into the internet

But want to make you sure that everything there is written on hard language (not on degen one) and there gives no opportunities how to earn on it...

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◢ RUNES ADVANTAGES

➜ The main features of Runes are the next:

• Purpose: Issuance of non-fungible tokens (NFTs)
• Creator: Casey Rodarmoar (yeah, it's the feature, because this guy is a legend who has a huge role in Ordinals development)

• Model: UTXO-BASED (it makes this infrastructure more effective, faster and cheaper, but I will make a thread about it today)

• Design: Simple (just entry and exit in BTC block)
• On-chain footprint: Low (Runes is very clean infrastructure)
• Lightning Compatibility: It has and it makes it more integrated with $BTC
• Errors: NON-PERMISSIBLE
• Open Mint: Allowed (every Rune can be minted publicity)

➜ More Users

The Runes protocol will allow projects to issue different types of fungible tokens, such as security tokens, stablecoins, and governance tokens, on the Bitcoin

This could expand Bitcoin’s utility and attract more users, who will enjoy near-instant and low-cost transactions due to the protocol’s potential Lightning compatibility

In other words, Runes could help Bitcoin achieve its goal of widespread adoption

➜ Increased Revenue

More transaction fees will be generated as more people interact with Runes tokens

This will boost revenue for miners, incentivizing them to keep securing the Bitcoin network

With the block reward set to decrease further in April 2024 (tomorrow), Bitcoin miners will be in need of more revenue drivers and Runes could be just the protocol needed to keep miners motivated

➜ Innovation (technology upgrade)

As we have already seen with the RSIC example, the Runes protocol is encouraging developers to innovate in new and exciting ways, giving users a chance to experience activities on the Bitcoin blockchain that no one would have ever thought possible

It will also open the door for developers wanting to tap into Bitcoin development while doing so on the world’s most stable and secure public blockchain

➜ Effective Issuance of Fungible Tokens

The Runes protocol seeks to enable asset issuance directly on Bitcoin with as few minimal negative effects as possible

As mentioned earlier, the protocol is improving on the current fungible token protocols that rely on native tokens and off-chain data

Moreover, its design is better thought out than the BRC-20 token standard, which was rolled out for fun to showcase what the Ordinals protocol can achieve

Therefore, the seriousness of this protocol could potentially make Runes more successful than BRC-20 tokens

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◢ WHAT'S NEXT FOR RUNES???

Rodarmor plans to introduce direct trading between users in the unspecified future

This could minimize reliance on centralized crypto exchanges and solve the problem of Replace-By-Fee (RBF)

RBF is the process of replacing a previous unconfirmed transaction with another version that includes a higher transaction fee

RBF aims to encourage miners to prioritize the transaction with a higher fee

Also, Rodarmor expects that once the OP_CAT Bitcoin Improvement Proposal (BIP) is approved, it will be possible to bridge runes tokens to Layer 2 networks

He estimates that the BIP will be introduced to Bitcoin within a year

OP_CAT is an operation code (opcode) in the original Bitcoin noscript. “CAT” represents the word “concatenate,” where two elements in a noscript are joined together

Satoshi Nakamoto disabled the opcode to prevent DoS attacks, but it's time to make Bitcoin ecosystem more scalable and compatible with L2 solutions