Can the Runes protocol surpass ERC20? The potential and challenges of Bitcoin issuance standards.

robot
Abstract generation in progress

Comparison of the Development of ERC20 and the Emerging Runes Protocol

The ERC20 protocol of Ethereum, as the leading token issuance standard in the cryptocurrency field, has brought about significant changes to the entire industry. It has not only propelled the development of the Ethereum public chain, making it the most widely used smart contract platform, but also fostered the prosperity of decentralized finance (DeFi), providing project parties with a more direct and efficient financing channel.

However, as the industry continues to evolve, emerging public chains are seeking breakthroughs, hoping to replicate the success of Ethereum. To stand out in this competitive market, new public chains need to possess two key elements: a sufficiently large market capitalization to solidify their position, and an innovative token issuance protocol to gain recognition from users and the community.

In this context, the Runes protocol, as an emerging token issuance standard, shows potential beyond ERC20. Its advantages are primarily reflected in the following aspects:

  1. Strong market capitalization foundation: Runes is built on the Bitcoin network, and Bitcoin's market capitalization accounts for half of the entire cryptocurrency market, providing a solid foundation for Runes.

  2. Innovative issuance mechanism: Runes inherits the fair launch concept of BRC20 while integrating the advantages of ERC20, achieving asset issuance on the Bitcoin mainnet and gaining wide recognition.

  3. Flexibility: Runes supports various issuance methods, allowing for a completely fair launch similar to BRC20, or reserving a portion of tokens for the team for fundraising like ERC20.

  4. Efficiency Improvement: Compared to BRC20, Runes' UTXO-based op_return design does not require additional inscription transactions, reducing network burden and user costs.

  5. Concurrency: Runes allows for batch sending of tokens to multiple addresses in a single transaction, improving transaction efficiency.

Will the Runes protocol surpass ERC20 and become the mainstream token issuance protocol in the crypto market?

Nevertheless, ERC20 still has the first-mover advantage and a mature ecosystem. Runes, as an emerging protocol, although it has greater growth potential and a sense of the times, still needs time to establish its own business loop and application ecosystem.

It is worth noting that the deployment, minting, and transfer operations of the Runes protocol are achieved by adding specific op_return data to Bitcoin transactions. This design preserves the security of the Bitcoin network while providing flexible options for asset issuance and management.

Will the Runes protocol surpass Erc20 and become the mainstream token issuance protocol in the crypto market?

With the development of BTC Layer 2 solutions, Runes is expected to achieve more complex business logic and application scenarios while maintaining the security of the Bitcoin network. This provides a broad prospect for the future development of Runes.

Will the Runes protocol surpass Erc20 and become the mainstream issuance protocol in the crypto market?

Overall, the Runes protocol, as an innovative asset issuance standard, combines the stability of Bitcoin with the flexibility of new technologies, and has the potential to occupy an important position in the future cryptocurrency market. However, whether it can ultimately surpass ERC20 to become the mainstream token issuance protocol still requires time and market testing.

Will the Runes protocol surpass Erc20 and become the mainstream token issuance protocol in the crypto market?

BTC1.92%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Share
Comment
0/400
LeekCuttervip
· 07-22 03:05
Don't be silly, don't expect to surpass everything.
View OriginalReply0
LiquidatedNotStirredvip
· 07-20 11:35
There is no need to follow the hype.
View OriginalReply0
ZenChainWalkervip
· 07-20 07:11
Ether still has to look at the big brother BTC's face.
View OriginalReply0
GasFeeNightmarevip
· 07-20 07:08
Forget it, the gas fee hasn't arrived, so I'm not going to proceed.
View OriginalReply0
SchrodingerWalletvip
· 07-20 07:06
Yo, runes are still blowing up.
View OriginalReply0
MercilessHalalvip
· 07-20 06:59
A digital player, don't ask why, this game is not for sale.
View OriginalReply0
not_your_keysvip
· 07-20 06:48
Haha, Bitcoin is still the best.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)