First, you should refer to the previous article to understand this one.

Why Buy Runestone 1: Odinals and BRC-20, Runes and Runestone

New technologies and standards related to the Bitcoin blockchain are gaining a lot of attention, and terms like Bitcoin Ordinals, BRC-20, and Rune are playing an important role in this space. In this article, we'll try to better explain the relationship between these three concepts and how each contributes to the Bitcoin ecosystem. There are many lengthy explanations available on the internet, so we'll try to keep this as concise and easy to understand as possible. Bitcoin Ordinals Bitcoin Ordinals are a way of recording ordered digital assets on the Bitcoin blockchain. By giving each satoshi a unique identifier, the data associated with it can be used to create different types of digital assets. This can essentially be used to create NFT-like assets on top of the Bitcoin blockchain. BRC-20 BRC-20 is a Bitcoin network [...].

Once you've seen it, let's continue the story.

The cryptocurrency market is always in a state of flux, exploring new innovations and evolving, with the latest being a new token standard built on top of the Bitcoin network and the Bitcoin NFT market called Inscription. In this article, we'll take a look at these new digital assets built on top of Bitcoin, the technological advancements associated with them, and their impact on the market.

Runestones: Is this the beginning of the end of the runes?

Runestone is a project that's currently garnering a lot of attention in the cryptocurrency market. In this article, we'll take a deep dive into Runestone, learn about its features and value, and discuss how it got started and what we can expect to see in the future.

What are Runestones? Runes and Runestones

First, you should know that runes and runestones are different concepts, as we explained in a previous post.

It starts with the developer.

The Rune Protocol technology for creating and managing various tokens on top of the Bitcoin network was invented by Casey, the creator of the Audience standard. The developer of Runestone is Leonidas, the founder of Ord.io.

Runestone is a type of NFT built on top of the BRC-20 standard (created by an anonymous developer, domo). The plan is to distribute the first tokens of the Rune family once the Rune Protocol, a complement to BRC-20, is officially released.

Early Bitcoin NFT Investors = Runestone Holders?

Since its inception, Runestone has set the record as the largest airdrop in the history of the Bitcoin Audience industry, with no presales or team allocations, and because it was free to early Audience investors, the stakes for everyone currently investing in rune-related NFTs are directly or indirectly intertwined. That's because it's unlikely that the heads of nearly every rune-related project that's popping up right now haven't owned Runestone at some point in their lives, and we suspect many of them still do. It's no wonder why Leonidas, the founder, initially gave the runestones away for free. It's no wonder why it's the number one runestone project of all time.

Features and value of Runestone

A runestone is actually a picture of a stone that is useless (?) in real life. It's more of a meme coin, as it doesn't seek any practical application or function per se. Instead, it's valued for its meaning of existence and historical significance. The first rune-based token to be offered to runestone holders will be DOG. To emphasize the symbolism, we're fundraising to have DOG engraved into the 840,000th Bitcoin block, just after the Bitcoin halving.

레오니다스는 "프로젝트로서의 실용성을 추구하지 않지만, 암호화폐 커뮤니티에서 큰 주목을 받는 문화적인 가치를 가지고 있다"고 강조했습니다. 이러한 접근은 현재의 암호화폐 시장에서 새로운 시도와 차별화된 가치를 제공하고 있습니다.

The evolution of the Bitcoin network and digital assets

The Bitcoin network has long been perceived as a simple store of value, but in 2022, there was a growing movement among blockchain experts to use Bitcoin in new ways. This was driven by advances in Ordinal theory, which allowed new protocols to run on top of the Bitcoin network, generating serial numbers to connect to Satoshi and add file data to the blockchain. These advances gave birth to a new market for Bitcoin-based NFTs.

BRC-20 and the Bitcoin-based Token Standard

BRC-20 토큰 스탠다드는 익명의 개발자인 '도모(domo)'에 의해 제안되었으며, 단순한 실험으로 시작되었지만 급속도로 인기를 얻었습니다. 이 토큰 스탠다드의 출현으로 인해 PEPE, ORDI와 같은 주목할 만한 토큰들이 시장에 등장했고, 초기 투자들 사이에서 관심이 높아졌습니다. 그러나 비트코인의 온체인 한계를 느끼는 사람들이 있었습니다. 메타데이터를 블록체인에 올리는 데에는 상당한 비용이 들었기 때문입니다. 그래서 대안으로 나온 게 룬입니다.

Bitcoin Runes and the New Token Standard

Bitcoin Runes is a new token standard for the Bitcoin blockchain. It competes with the existing BRC-20, taproot assets, RGB, Counterparty, and Omni Layer, and is characterized by its use of UTXO. UTXO stands for Unspent Transaction Output, Balance not yet spent이라는 의미입니다. 비트코인 네트워크에서는 잔액이라는 개념은 애초에 존재하지 않고, 트랜잭션에 의한 결과물들의 합을 잔액이라는 개념으로 사용하는데 이를 UTXO 데이터로 대체합니다. 각 지갑의 UTXO들은 해당 지갑 주인(소유주)에 대해 공개키 암호로 잠겨있습니다. 룬은 더 적은 온체인 발자국을 가지고 있으며, UTXO 관리를 신중하게 할 것을 장려합니다. 이는 비트코인 네트워크의 불필요한 '쓰레기' UTXO 생성을 줄여 네트워크의 혼잡을 완화하는 잠재력을 가지고 있습니다.

Market reaction and future outlook

Runes are currently in the early stages of development, and there are many technical challenges that need to be addressed before they can be widely used. Runes may not be compatible with all Bitcoin wallets and exchanges, so it's important to check with your wallet provider before sending or receiving Runes. Additionally, Runes are a speculative asset and are subject to volatility in value.

While the future of Bitcoin-based token issuance is still surrounded by uncertainty, the emergence of new token standards like Runes has the potential to revitalize the market. It will be interesting to see how these technological advances will impact the market and what new opportunities they will bring.