Bitcoin’s newest protocol: Boosting activity in the network and upping the price game

  • 2024-11-20

The Runes protocol, or the widely discussed new Bitcoin milestone, is set to revolutionize the landscape with the first-ever general fungible token standard. This event isn’t only positioning the crypto in the spotlight again and possibly contributing to a more optimistic Bitcoin prediction but also giving birth to a concept that’s been a mere science-fiction plot until now. With the following insights in mind, wondering whether metrics in other proof-of-work cryptos, like the BNB crypto price prediction, could be impacted is only natural.

Now, welcome to the era of Bitcoin decentralized finance, or BTCFi – the platform that pioneers decentralized finance’s future on the Bitcoin network. The previously launched fungible tokens labeled as “BRC-20”, together with Runes, the white-hot protocol of these days, aim to expand Bitcoin’s utility in a new paradigm known as BTCFi. Runes, a new token standard whose launch date matches the halving’s, eases the fungible token development process on blockchain for worldwide users. This breakthrough enhances the ledger’s productivity around fungible tokes. It boosts the network’s usefulness to draw a larger audience to the table, enabling more enthusiasts to craft blockchain-based community-driven projects such as meme coins.

Remind me what Runes is again

As with any trailblazing tech development, the straightforward way to grasp its essentials is to define it quickly. Runes is a protocol that allows blockchain users to build inscriptions resembling NFTs on Bitcoin, similar to Ethereum or Solana. While the SRC-20 and BRC-20 standards have been deployed, the downside is that they’re built on the Ordinals theory, which may spam Bitcoin.

To eliminate all the “junk” in the ecosystem, the Ordinals developer communicated in September of last year the intent to launch the new protocol, building a healthier environment for token etching.

The project launches at block height 840,000—the same one as the halving. It’s expected that the block can drive a lot of demand for mining pools. The protocol, a message held in a Bitcoin transaction throughput, is believed to eventually make all the other blocks redundant.

What to expect in the beginning

Just like with any technology in its nascent phase, Runes may also trade similarly with other meme coins in its first days. Ignas, a pseudonymous DeFi expert, emphasizes this theory and highlights that the crypto community should expect to see real market opportunities coming Bitcoin’s way a few months after the investor frenzy calms a little.

Three tokens that made a name for themselves, namely RSIC, Runestone, and PUPS, are already booming and enticing investors who’d go to many lengths for the new, already-hyped Rune token airdrops. Similarly, threads built on the fear of missing out don’t cease to flow, meaning practicing patience until the waters calm is the wisest way to go around the new tokens.

What about prices?

The crypto community should expect floor price declines significantly since the launch can’t enhance the BRC-20 token trading experience within a snap of the finger. Traders with negligible holdings may find themselves in the impossibility of affording to pay more on orders owing to the currently skyrocketing Bitcoin transaction fees powered by terrific enthusiasm.

Nevertheless, a specific event makes for much of the excitement gathered around the new protocol’s launch. The halving, known as the quadrennial mining reward slash that slows down mining rates, has also sparked much interest. It is a beautiful coincidence that Casey Rodarmor’s project debuts harmoniously with the former event. Or not?

Now, it’s essential to remember who Case Rodarmor is, for you have likely come across this name numerous times in online and face-to-face crypto discussions. Casey Rodarmor is the famous developer behind Bitcoin Ordinals, inscriptions, and now runes protocols, breathing new life into the conservative blockchain realm.

Rodarmor’s massive project debut last year, which made NFT-like inscriptions on Satoshis a reality, blessed crypto miners with a joint $256MN in revenue. The dev’s latest initiative is a stone’s throw away from remaking history. The upcoming months will be full of excitement for the Bitcoin ecosystem, so stay close to discover the extent to which investors and traders will cherish the latest developments.

What does Runes bring to the table?

The new fungible token standard is a game-changer for several areas, from users to revenue to issuance. First, it enables users to release various fungible token types, including stablecoins, security tokens, and governance tokens. Since all this activity unfolds on the Bitcoin ledger, the platform’s enhanced utility expands the user base while offering cheaper and swifter transactions owing to potential Lighting compatibility. All of these are only helping Bitcoin meet its goal of widespread adoption.

At the same time, the boosted activity in Runes tokens generates more transaction fees. This raises miners’ revenue and prompts them to continue safeguarding the network. Noteworthy, miners need more revenue opportunities owing to the slashed reward after the halving, so Runes may serve as the exact motivator to keep miners going.

Last, and most importantly, the standard emboldens devs to innovate and experience new ways on the platform, heartening users to engage in activities that would have only seemed impossible till the protocol launch. New categories of developers are welcome to dip their toes into Bitcoin development, ensuring they’re doing it on the securest and most robust public blockchain.

We need to make a case for Bitcoin Pups

Bitcoin Pups, a Bitcoin-based meme coin that not long ago dominated the crypto landscape, has forever revolutionized the industry by airdropping the first BRC-20 token on the parent platform. While it’s commonly linked with the first-ever airdrops on Bitcoin, the project represents a mere meme coin, where the fact that it is an entirely community-driven token makes it stand out from other coins named after artwork, animals, characters, and so on.

Momentarily, Pups is issued as an Ordinals token. Yet, it’s bound to move to the Runes. X platform users hyped up the protocol as the new tenderfoot after an outburst in Base and Solana.

Endnote 

The Runes protocol may be an even weightier event in Bitcoin's history than most of its previous milestones. While the Ordinals protocol sparked renewed activity in Bitcoin, the Runes takes it all to the next level. 

It will certainly commence a new era for the world's broadest blockchain to date, so stay close to see where Bitcoin is headed. It will be an unprecedently exciting journey!