This article will help you quickly understand what runes are and how retail investors can participate.

1. What are runes?

With the popularity of BRC-20, transactions of related tokens have generated a large amount of junk data, occupying the space of Bitcoin, and putting great pressure on the maintenance of the Bitcoin network.

Rune is a replacement for the BRC-20. This protocol is a simple, UTXO-based FT protocol that enables Bitcoin users to have a good experience. Also because the protocol is based on UTXO, it means they can be more easily integrated into RGB or Lightning Networks.

Simply speaking, the inscription is unique and similar to NFT, and the rune is similar to the ERC20 protocol token. The reason for focusing on runes is that they offer a new way to leverage the Bitcoin network and have the potential to become a new way of issuing digital assets.

2. Rune Minting Analysis

Runes allows Bitcoin transactions to etch, mint, and transfer Bitcoin’s native Runes commodities. Etching refers to the process of rune asset issuance, which can be compared to the deployment of BRC20 tokens.

By etching information into Runestones (Runestones), runes can be cast. The runes are stored in the Bitcoin transaction output and can be decoded according to rules.

A transaction can only contain one rune stone at most. New runes can be etched and existing runes can be cast through the rune stone. The attributes of a new rune can be set when etching it, but once set the attributes cannot be changed. If malformed runes are created during etching due to formatting errors etc., known as "senotaphs", the runes entered into the monument transaction will be destroyed.

In addition, runes have a pre-mining mechanism, that is, the etcher can allocate a certain number of etched runes to himself.

3. How should retail investors participate?

Casting runes (new level one) You can cast runes by using tools such as Unisat, OkxWeb3, etc. If you want to personally mint the earliest rune alpha, you need to deploy a full node. Personally, I don’t think it is necessary for retail investors.

There is only one hard-coded rune UNCOMMON•GOODS. It will take 4 years to play, so don’t rush it yet. Trading runes (secondary trading) Although the runes are not online yet and are not open for trading, you can follow the relevant trading platforms to participate in transactions in time after the runes go online.

Trading NFT Some projects will first issue airdrop certificates (Ordinal NFT), and then airdrop rune tokens to airdrop certificate holders after the runes are online.

The above is the detailed content of This article will help you quickly understand what runes are and how retail investors can participate.. For more information, please follow other related articles on the PHP Chinese website!