Will the Runes protocol surpass Erc20 and become the mainstream currency issuance protocol in the encryption market?

As we all know, the Ethereum ERC20 protocol is the largest currency issuance protocol in the crypto circle. It has created the following achievements:

First, it has established the Ethereum public chain and made Ethereum’s EVM smart contract platform the most mainstream in the entire crypto circle. development agreement.

The second is the achievement of DeFi. The emergence of ERC20 token allows project parties to use decentralized tokens to carry out decentralized financial services.

The third is the achievement of decentralized financing and entrepreneurship. To put it bluntly, it is the achievement of ICO. Investors and entrepreneurs can invest and finance more directly and efficiently.

Looking at the current narrative of all new public chains, they are basically copying the success of Ethereum and want to support their own ERC20. So how can we make ERC20 for our own platform? There are two points:

1. The market value of the new public chain must be large enough, so Solana has been pulling hard, and even exceeded 20% of the market value of ETH at one time, wanting to consolidate its foundation.

2. The currency issuance protocol must be innovative and cannot simply copy erc20. It must be recognized by crypto users and communities.

Compare the ERC20 achievement path above with the breakthrough path of the new currency protocol. At present, the only one that is most likely to surpass the ERC20 currency issuance protocol is Runes. The reasons are as follows:

• The market value of BTC accounts for 50% of the market value of cryptocurrencies. It has the strongest foundation, and its foundation even far exceeds the foundation of Ethereum.

• The BRC20 inscription came out, and the logic of fair launch was innovative enough and recognized by community users.

• The Runes protocol is an iterative new currency issuance protocol based on the fair launch of BRC20. It is compatible with the advantages of BRC20 and ERC20, and is also an asset issuance protocol on the BTC mainnet.

The basic features of Runes

use the op_return carried by UTXO to describe basic operations such as deploy, mint, and transfer of tokens, as well as the token information they carry.

Token issuers can customize a completely fair launch similar to BRC20, or they can customize the fundraising process of ERC20 for teams and institutions. It also supports both, one part for fair launch and the other part for team reservation.

Runes VS BRC20

• More flexible: BRC20 can only be launched fairly, which is not conducive to team fundraising and financing. And Runes can.

• More convenient: When transferring BRC20, you must first engrave, send a transaction, and then transfer, which requires a heavy external search engine to trace the history. Runes based on UTXO op_return carry operation codes and information in each UTXO, and do not require additional inscription transactions. They only require lightweight retrievers, which will not cause large-scale small-amount UTXO dust attacks on the BTC network, and will also Users save transaction fee costs.

• Can be concurrent: For example, if a transaction contains an op_return plus M (M is an integer, for example, it can be set to 1000) addresses, a transaction can be sent to M users on average. This is somewhat similar to the basic red envelope sending function of WeChat red envelope.

Runes VS ERC20

• The foundation of erc20 is ETH, the foundation of Runes is BTC, and the foundation of Runes is stronger.

• erc20 Since 2016, there have been many closed-loop businesses and a large ecosystem. Runes has not officially started yet. erc20 has first-mover advantages and scale effects.

• Runes has been updated. There is a saying in the currency circle that speculation is new, not speculation. Runes is more fashionable and has greater room for growth.

• Runes is compatible with the fair launch of Inscription BRC20, which is the most important asset narrative in this crypto cycle.

• erc20 has a Turing-complete EVM mainnet to support its business closed loop, but Runes can use BTC Layer2 to complete the business logic brought by Ethereum’s Turing-completeness. It is understood that BEVM, the leading BTC L2 project, has long announced that it will be connected to the Runes protocol as soon as possible, allowing users to cross Runes protocol assets to the second-layer network for commercial applications.

Some details of the Runes coin issuance protocol

deploy: Deployment of runes is achieved by constructing a transaction with the following information in op_return

In the Deploy transaction, it can be found in op_return It also contains the following information to achieve deployment while the project party reserves tokens

There are 3 ways to start the deployed runes:

term is set to 0, with Edict, which means that all the deployed runes are in the hands of the project party.

term is not 0, without Edict, which means that the project party does not reserve runes. The two constraints of deadline and term are met. It can be fair mint

term is not 0, with Edict, which represents the rune reserved by the project side. It can be fair mint

Mint when the two constraints of deadline and term are met: When the constraints are met, it only needs to be in op_return With the following information, mint can be realized. The number of mint has been limited during deployment

Transfer: input and use utxo with runes, and then use op_return with Edict information to specify where to transfer. a utxo.

The above are some of the most basic operations for issuing assets through the Runes protocol. Interested friends can try it.

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