The buzz around BRC-20 tokens has been palpable in the Bitcoin community, with the Ordinals protocol enabling users to embed NFT-like assets on the chain and potentially launch fungible tokens. However, a new standard known as Runes is poised to revolutionize the landscape of Bitcoin fungible tokens, and leading wallet provider Xverse is gearing up to fully support it.
Runes, developed by Casey Rodarmor, the mind behind the Ordinals protocol, promises a more efficient approach to minting and transacting fungible tokens on Bitcoin. The protocol is scheduled to debut on mainnet alongside the upcoming Bitcoin halving event in April.
In a recent announcement, Xverse revealed that it has incorporated testnet support for Runes in preparation for the mainnet launch next month. Users can now engage with Runes tokens and Runes-based applications on testnet, with Xverse committed to offering full support on mainnet as soon as the protocol goes live.
“We’re thrilled to lead the way as the first wallet to provide comprehensive support for the highly anticipated Runes protocol,” said Ken Liao, founder and CEO of Xverse. “With the launch of testnet support, developers can begin testing their Runes applications and contribute to the growth of a new ecosystem on Bitcoin’s layer-1.”
The BRC-20 token standard, built atop the Ordinals protocol, initially emerged as an experimental concept that quickly garnered widespread attention, spawning multiple tokens ranking among the top 100 cryptocurrencies by market capitalization.
However, challenges surfaced along the journey, as highlighted by Liao. BRC-20 token transactions necessitate a separate Ordinals inscription for each action, leading to network congestion. Additionally, these transactions generate unspent transaction outputs (UTXOs) that accumulate on Bitcoin nodes. Inconsistencies among various BRC-20 token indexers have also posed potential issues for traders and platforms.
Efforts have been made by key BRC-20 developers and platforms to address these challenges, such as the formation of the Layer 1 Foundation. Nevertheless, the Runes protocol, endorsed by Ordinals creator Rodarmor, promises a more efficient and streamlined approach without the need for an indexer.
Notably, Runes is set to debut on mainnet concurrent with next month’s halving event, a pivotal occurrence that occurs approximately every four years and halves Bitcoin miner rewards.
Xverse’s existing support for an array of Bitcoin-related assets and protocols, including Ordinals, BRC-20 tokens, rare satoshis, and the Stacks layer-2 network, underscores its commitment to fostering innovation within the Bitcoin ecosystem. Additionally, Xverse stands out as the first Bitcoin wallet to enable users to connect to websites, akin to MetaMask on Ethereum, facilitating seamless interaction with decentralized applications (dApps).
As Runes prepares to make its mark on the Bitcoin landscape, the collaboration between Xverse and the Runes protocol heralds a new era for Bitcoin fungible tokens, promising enhanced efficiency and usability for users and developers alike.
