The Runes Protocol, conceived by Casey Rodarmor, the creator of the esteemed Ordinals protocol, facilitates the issuance of fungible tokens on the Bitcoin network.

Debuting in September 2023, Runes is currently undergoing testing in its version 0.18.1 (Latest), with plans to launch its mainnet during the Bitcoin Halving event at block 840,000 in April 2024.

The BRC-20 token standard quickly gained popularity upon its release, reaching an astonishing market capitalization of $1 billion within three months. However, widespread adoption led to the accumulation of “dust” UTXOs, causing network congestion. The Runes protocol is designed to address this issue by implementing a UTXO-based approach to limit the creation of unnecessary UTXOs.

The Rune protocol operates on Bitcoin by utilizing messages stored in the transaction outputs. These messages, referred to as runestones, are limited to one per Bitcoin transaction.

Features of the Runes Protocol:

  • UTXO-based structure
  • Simplified token management
  • User-friendly protocol design
  • Flexible assignment and transfer of balances

The Rune Protocol supports the following methods:

1. Etching: This method is used to create rune tokens. Information in the Etching section describes the attributes of the rune, and once an Etching transaction is confirmed, this information becomes immutable and cannot be modified.

Attributes of the rune tokens include:

  • Name: Characters from A-Z with a length of 1 to 28.
  • Divisibility: The level of divisibility of the rune token.
  • Symbol: The symbol of the rune token.
  • Premine: The creator of the rune token can pre-allocate a certain quantity of tokens for themselves.
  • Terms: Conditions set for minting rune tokens.

2. Minting: This method allows users to continue minting tokens that have been previously etched (according to the terms set in the Etching section).

3. Transferring: Rune token holders can transfer their tokens to another wallet address or burn them.

RuneData – A Runes protocol indexer Powered by RunicLayer2 and RunesBridge

RuneData stands as a cornerstone in the ecosystem of Runes, leveraging the power of RunicLayer2 and RunesBridge to provide users with a comprehensive indexer experience. RuneData is constantly updated with the latest proposals from the visionary mind of @rodarmor.

Harnessing data from transactions involving Runes across the Bitcoin network, RuneData transforms this information into easily digestible insights, presented through a user-friendly interface and accessible via API. This transformation process is where the magic happens, as intricate transaction details are organized and refined into coherent data points, ready to empower users with actionable information.

Through RuneData users have free access to transaction information related to Runes tokens. Whether it’s tracking the number of runes minted, tracking minting progress, or delving into the intricacies of Rune transactions, RuneData provides a comprehensive set of tools to meet users’ data needs.