Can the Runes protocol become the mainstream issue coin standard in the crypto market?

The ERC20 protocol of Ethereum, as the most widely used token standard in the encryption field, has had a huge impact on the entire industry. It has not only promoted the development of the Ethereum public chain, making it the most mainstream smart contract platform, but also facilitated the rise of decentralized finance (DeFi), providing new avenues for project financing.

However, with the constant emergence of new public chains, they are all seeking to replicate the successful model of Ethereum while striving to create their own unique token standards. To stand out in this highly competitive market, new issue coin protocols need to have two key elements: a sufficiently large market capitalization base and an innovative issue coin mechanism.

In this context, the Runes protocol demonstrates potential that surpasses ERC20. This is mainly based on the following aspects:

1. Bitcoin, as its foundation, has a market value advantage far exceeding that of Ethereum, providing a solid development basis for Runes.

2. The innovative issuance mechanism of BRC20 inscriptions has gained widespread recognition from the community, and Runes has further optimized this based on that.

3. The Runes protocol combines the advantages of BRC20 and ERC20, while serving as an asset issuance standard on the Bitcoin mainnet, offering unique advantages.

Core Features of Runes Protocol

Runes utilizes the op_return feature of UTXO to record various operational information of the token. It allows issuers to flexibly choose a completely fair issuance, team reservation, or a combination of both, to meet the needs of different projects.

Compared to BRC20, Runes perform better in the following aspects:

• A more flexible issuance mechanism that benefits project financing.
• More efficient transfer process without the need for additional engraving transactions
• Support batch transfers to improve efficiency and reduce costs

Compared to ERC20, the advantages of Runes are:

• Based on the Bitcoin network, enjoying a more stable value foundation.
• As an emerging protocol, it has greater development potential.
• Combines the advantages of fair issuance and aligns with current market trends.
• Complex business applications can be implemented through the Bitcoin Layer 2 network.

Technical Details of the Runes Protocol

1. Deploy: The deployment of the rune is achieved by constructing an op_return transaction containing specific information. Tokens can be reserved simultaneously during deployment.

2. Mint: Users can mint through a simple op_return transaction if the preset conditions are met.

3. Transfer: Use UTXO with runes to specify the transfer target through op_return.

The Runes protocol provides project parties with various launch options, including all tokens controlled by the project party, completely fair issuance, and models with partial reserves and partial public issuance.

Overall, the Runes protocol provides a highly promising new coin issuance standard for the crypto market by combining the stability of Bitcoin, the innovation of BRC20, and the functionality of ERC20. As the ecosystem continues to improve and application scenarios expand, Runes is expected to play an important role in the future issuance of crypto assets.