What are inscriptions, ordinal numbers, runes?
We recently shared the story of how the Ordinals protocol was added to the Bitcoin network in 2023. Users began using Ordinals to engrave unique data (NFT “inscriptions”) directly onto Bitcoin Satoshis, and soon Ordinals inscriptions allowed them to create fungible BRC-20 tokens on the Bitcoin blockchain. . Inscription-based Bitcoin NFTs and BRC-20 tokens have expanded the Bitcoin landscape to include both fungible and non-fungible tokens. The BRC-20 token has become quite popular and has a market capitalization exceeding $2 billion.
Then, in September 2023, when Ordinals was at its peak of popularity, Casey Rodarmor, the developer of Ordinals, proposed Runes, another new protocol for Bitcoin’s tokens. Runes introduces a new token standard for Bitcoin and simplifies the fungible token creation process, improving efficiency for users. Runes’ motivation was to improve BRC-20.
Runes was launched at network block 840,000, coinciding with the Bitcoin halving event on April 20, 2024.
Why is Rune better than BRC-20?
Runes aligns more closely with the Bitcoin community’s values and unwritten rules than BRC-20, including protocol simplicity, independence of off-chain data, and use of unspent transaction outputs (UTXOs) as the state model. Runes also uses a smaller blockchain footprint, thus avoiding the perception that it is filling the Bitcoin blockchain with “garbage” data.
Unlike the complexity of BRC-20, the simple rules of the Runes token allow the token to be included in many wallets, requiring only relatively minor modifications by wallet developers.
If you want to know more about how the Runes protocol works, you can read more details in the Ordinals documentation.
Why do runes have such long names?
Runes have a unique and forward-thinking naming characteristic. Short names for individual runes are unlocked (allowed) over time. This rule is intended to prevent more attractive, shorter names from taking the lead and “squatting.” Initially, only rune names with 13 or more characters will be unlocked. So (depending on when you read this article) you may only see runes with long names available for minting and selling. An example of an early rune name is “UNCOMMONGOODS”.
How quickly do short names unlock? The rune was unlocked at block 840,000, and once every 17,500 blocks thereafter (which takes about 4 months), the next shorter length rune name availability will be unlocked. The next unlock of shorter rune ticket names is expected in September 2024.
What are runes used for?
You will inevitably see a lot of meme runes being traded for, which are very simple to make in the first place. There are more “serious” rune projects in the works, but it’s difficult to predict which ones will be successful and when more valuable rune-based projects will emerge.
What are some popular Bitcoin Loon projects?
You can follow which Runes projects are new and most popular at several online Runes explorers, including Ordiscan.
How can I craft, buy, and sell runes?
Platforms like Ordinalbots make the process of “etching” and casting runes simple. “Etching” sets the rune’s properties and “minting” creates a new rune that can be transferred.
Trading platforms like Magic Eden already support buying and selling runes. OKX is another one.
If you are unsure about anything, always do your own research and/or consult a professional.
How do I use my wallet to back up and protect my runes?
Rune-enabled wallets work like any other cryptocurrency wallet. To purchase and back up some runes, follow these steps:
- Create an account, obtain a backup of your seed phrase, and deposit funds into a Rune-backed wallet of your choice.
- Generate or buy Bitcoin Runes on the platform of your choice.
- Receive Bitcoin Runes from the marketplace or trading platform of your choice using a Rune-compatible receiving address in your wallet.
How do you ensure inheritance of Bitcoin runes?
You must protect the long-term storage and inheritance of Bitcoin Runes in the same way as any other Web3 digital asset.
Web3 Inheriting assets differs from the relatively simple traditional inheritance steps of going to a bank or broker and notifying them that someone has passed away or is incapacitated and being granted access to those assets. In contrast, with Web3 assets, you, the owner, are responsible for the security and custody of those assets. If you do not record all the details of your assets and pass them on to your intended beneficiaries, you are likely to lose your assets. Even if the details are filled out accurately, heirs often encounter complex technical issues during the succession process.
Take the risk off your web3 and Bitcoin asset wallet backups 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 everyday people: collectors, creators who create digital art and NFTs, and cryptocurrency enthusiasts who purchase cryptocurrencies. Vault12 Guard is designed to make backing up all Web3 assets as simple as possible and then designating a beneficiary to receive those assets if the owner is incapacitated or dies.
Vault12 Guard makes it very simple to back up your items for recovery. Enabling inheritance is very simple. And it’s very simple for your heirs to retrieve those assets when they need them. Simply download the app from the App Store (iOS or Android), install it, create your digital vault, and start adding assets right away. Assets are stored locally on your phone device for global, 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 may be business partners, family members or friends who will guard your safe. Your guardian will grant you access to your Web3 assets in the event of your death.
You can learn more about crypto inheritance here or learn how to quickly set up a vault to bring longevity and resilience to your digital asset journey.