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 encryption circle. It has created the following achievements:

First, it has established the Ethereum public chain and made Ethereum’s EVM smart contract platform an integral part of the entire industry. The most mainstream development protocol in the encryption circle.

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

In order to achieve the goals of centralized financing and entrepreneurship, ICO has become a more direct and efficient way for investors and entrepreneurs to invest and raise funds.

Looking at the current narratives 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.

There are obvious differences in the development paths of ERC20 tokens and new currency protocols. 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 the mainstay of BTC. Online asset distribution agreement.

Basic features of Runes

Use the op_return carried by UTXO to describe basic operations such as deploy, mint, transfer, etc. of the token and the token information it carries.

Token issuers can customize a completely fair launch similar to BRC20, or they can customize the ERC20 team institutional fundraising process. 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 yet officially started. erc20 has first-mover advantages and scale effects.

• Runes is 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: Implement the deployment of runes by constructing a transaction with the following information in op_return

In the Deploy transaction, the following information can be included in the op_return at the same time to achieve deployment while the project party reserves tokens

for deployment There are 3 ways to start 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 The project side does not reserve runes. Fair mint

term is not 0 and contains Edict, which means that the project side reserves runes. When both deadline and term constraints are met, fair mint

term is not 0. You can fair mint when there are constraints

Mint: When the constraints are met, you only need to include the following information in op_return to implement mint. 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 which utxo to transfer to. ###

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