What are inscriptions, ordinals, and runes?
We recently shared the story of the Ordinals protocol being added to the Bitcoin network in 2023. Users began using Ordinals to write unique data (NFT “inscriptions”) directly to the Bitcoin Satoshi, and soon after, Ordinals inscriptions enabled the creation of fungible BRC-20 tokens on the Bitcoin blockchain. Inscription-based Bitcoin NFTs and BRC-20 tokens expanded the Bitcoin realm to include both fungible and non-fungible tokens. BRC-20 tokens have become quite popular, with a market cap of over $2 billion.
Then in September 2023, at the height of Ordinals’ popularity, Casey Rodarmor, the developer of Ordinals, proposed Runes, another new protocol for tokens on Bitcoin. Runes introduces a new token standard for Bitcoin, streamlining the process of creating fungible tokens and increasing efficiency for users. The motivation behind Runes was to improve BRC-20.
Rune was launched at network block 840,000, coinciding with the Bitcoin halving event on April 20, 2024.
What makes the Rune better than the BRC-20?
Runes aligns more closely with the Bitcoin community’s values and informal conventions than BRC-20, such as protocol simplicity, independence of off-chain data, and the use of unspent transaction outputs (UTXOs) as a state model. Runes also uses a smaller blockchain footprint, thus avoiding the perception that it is filling the Bitcoin blockchain with “junk” data.
In contrast to the complexity of BRC-20, the simple rules of Rune tokens allow them to be included in many wallets, requiring relatively minor modifications from wallet developers.
If you’d like to learn more about how the Rune Protocol works, you can read more in the Ordinals article.
Why are the rune names so long?
Runes have a unique and forward-looking nature to their ticker naming. Shorter names for individual runes will be unlocked (allowed) over time. This rule is intended to prevent frontrunners and “squatting” of more attractive and shorter names. Initially, only rune names longer than 13 characters will be unlocked (depending on when you read this article), so you will only see long-named runes available for minting and selling. An example of an early rune name is “UNCOMMONGOODS”.
How soon will short names be unlocked? Runes were unlocked at block 840,000, and the next shorter rune name availability will be unlocked every 17,500 blocks thereafter (approximately 4 months). The next unlock for short rune ticket names is expected in September 2024.
Where are runes used?
At first, you will inevitably see a lot of meme runes being traded, because they are so simple to make. There are more “serious” rune projects in the works, but it is hard to predict which ones will succeed and when more value-added rune-based projects will be released.
What are the popular Bitcoin Rune projects?
You can find out which rune projects are new and most popular on several online rune explorers, including Ordiscan.
How do I cast, buy, and sell runes?
Platforms like Ordinalbots can simplify the process of “etching” and casting runes. “Etching” sets the properties of a rune, while “casting” creates a new rune that can be transferred.
Trading platforms like Magic Eden already support buying and selling runes. OKX is one of them.
If you are unsure about anything, always do your own research and consult a professional.
How do I use my wallet to back up and secure my Runes?
A Rune-enabled wallet works like any other cryptocurrency wallet. To buy and back up Runes:
- After creating an account and securing your seed phrase backup, fund your desired wallet where you can use your Runes.
- Create or buy Bitcoin Runes on your preferred platform.
- To receive Bitcoin Rune on your chosen marketplace or trading platform, use a Rune-compatible receiving address in your wallet.
How do you ensure inheritance of Bitcoin Runes?
Long-term custody and inheritance of Bitcoin Runes should be protected in the same way as other Web3 digital assets.
Inheriting Web3 assets is different from the relatively simple steps of traditional inheritance where you go to a bank or broker and tell them that someone has passed away or is incapacitated and they are given access to the assets. On the other hand, with Web3 assets, you as the owner are responsible for the security and custody of the assets. If you have not recorded all the details of the assets and passed them on to the intended beneficiaries, there is a high possibility that the assets will be lost. Even if you have recorded the details correctly, there are still many ways in which the heirs can go wrong due to complex technical issues during the inheritance process.
Eliminate the risk of backing up your Web3 and Bitcoin asset wallets by storing your wallet seed phrase in a special digital vault.
How can Vault12 Guard protect Bitcoin Runes?
Our latest technology release, Vault12 Guard, is a mobile app designed for collectors, creators who create digital art and NFTs, and crypto enthusiasts who buy cryptocurrencies. Vault12 Guard is designed to make it as simple as possible to back up all your Web3 assets and designate beneficiaries who will receive your assets in the event of your incapacity or death.
With Vault12 Guard, it’s super easy to back up for your own recovery. It’s super easy to enable inheritance. And it’s super easy to retrieve your assets when your heirs need them. Just download and install the app from the app store (iOS or Android), create a digital vault, and start adding assets right away, which are stored locally on your phone device for full, distributed, distributed backup and inheritance.
Vault12 Guard allows you to add and assign your own Vault Heirs and Guardians. These are people you know. They can be business partners, family members, or friends who will protect your Vault. Your Guardians will grant you access to your Web3 assets when you pass away.
Learn more about cryptocurrency inheritance here, or learn how to quickly set up a Vault to add longevity and resilience to your digital asset journey.