Runes became a hype over the past week following the end of the fourth Bitcoin Halving. Not long before, PUPS, the widely considered “first” meme coin on Bitcoin, was also said to be shifting to the Runes protocol after the halving.
As Runes is pretty new to many people at first glance, and the hype surrounding it is expected to last, this article will help you learn more about it. Let’s get started!
Highlights:
- Bitcoin sparks discussion again as the halving is finished.
- Ordinals make NFT artifacts possible on the Bitcoin network.
- Runes Protocol reshapes the meme coin world by creating them on Bitcoin.
- PUPS is expected to migrate to the Runes Protocol in the coming weeks.
The Runes token standard was implemented on April 20, which happened to be Bitcoin's fourth halving. This led to a sharp increase in transaction fees in a short period, but was not maintained.
Before Runes, There Was Ordinals
To understand the Bitcoin Runes protocol better, let’s take a look at Ordinals first. Ordinals is the brainchild of the creative developer Casey Rodarmor. He decided to push the blockchain boundaries in 2023 by developing an innovative feature to alter “satoshis”, the smallest unit of a bitcoin.
The idea behind these fascinating Ordinals is that one can directly inscribe data on a single satoshi to create digital artifacts of unique nature.
What Does the Ordinals Do?
- Satoshis: A satoshi is a minor fraction of a Bitcoin. Ordinal takes advantage of these tiny fractions for data inscription for uniqueness.
- Data Inscription: Ordinal allows users to embed data on each satoshi. This data can be in the form of images, texts, or even cryptographic signatures. These unique artifacts permanently remain recorded on the blockchain.
- Immutable Records: The inscribed data makes the satoshis immutable. Every artifact created using ordinals is tamper-resistant, providing a secure record of existence.
From Ordinal to Runes Protocol
In September 2023, Casey Rodarmor decided to come back with a bang by creating the Bitcoin Runes. Runes are fungible tokens on Bitcoin that rely on the Runes Protocol. The protocol is a smart tactic to handle digital assets on Bitcoin.
The Runes Protocol uses the Unspent Transaction Output Model (UTXO). The model acts like a list of every Bitcoin in the entire system. Therefore, it keeps check and balance about who owns what so that no one can spend the same Bitcoin more than once.
The Bitcoin Runes Protocol ensures that the value each Bitcoin holds remains the same across time and the creation of Bitcoins remains unique. In other words, the value of 1 BTC will always remain 1 BTC. Runes ensure integrity and prevent any inflation within the system.
What Does the Runes Protocol Do?
- UTXO Model Extension: UTXO shows us the amount of bitcoins that have not been spent yet. It means that you can use these digital tokens for future transactions. When we say that the Runes Protocol is an extension of UTXO, it means that each token will now represent a bitcoin along with Runes. Therefore, each transaction will produce Bitcoin and any number of Runes.
- Ordinals and Inscriptions: Ever heard of the stacking order? Ordinals and inscriptions allow users to add data to bitcoins by “stacking” it in a particular order. Runes break away from the order constraint. You can include Runes in transactions without worrying about the order.
- Opperturn-based Protocol: Get ready for a new concept of “Opperturn,” it is a type of digital container that holds data. You cannot spend the data like regular tokens. As a node processes a transaction, it forgets the majority of the data and only holds a small part of it. When you rely on Runes, you can include extra data instructions on one of the “Opperturns,” known as a runestone. It will decide the direction of Runes tokens from inputs to outputs.
PUPS: The First Meme Coin on Bitcoin
PUPS is widely considered the first meme coin on Bitcoin, conducting a successful BRC-20 token airdrop on Bitcoin. The puppet monkey with a hat is a Bitcoin trading token that uses the BRC-20 standard. It is the first airdrop on Bitcoin and is inscribed into the blockchain through Ordinals.
PUPS is just a meme coin that has zero utility, no roadmap, no promises. It is only community-run. However, it created a huge change in the crypto market as a fungible trading token, as the data is embedded into the bitcoin blockchain permanently, the transactions are public. It is great for security and transparency as anyone can view the inscription without being able to use the same tokens more than once.
PUPS Intends to Shift to Runes Protocol
PUPS is expected to migrate to Runes Protocol in the coming weeks. The buzz around Runes Protocol brought a success to its price a short time before the halving, but it is in consolidation lately, as investors are expecting to see the transformation then decide the next move.
You can go visit CoinEx to search for PUPS's latest performance.
PUPS Overview
- Name: PUPS
- Official link: https://www.pupstoken.com/
- Explorer: https://solscan.io/token/PUPS8ZgJ5po4UmNDfqtDMCPP6M1KP3EEzG9Zufcwzrg
- Total supply: 7.77 Billion
- Contract address: 25hAyBQfoDhfWx9ay6rarbgvWGwDdNqcHsXS3jQ3mTDJPUPS8ZgJ5po4UmNDfqtDMCPP6M1KP3EEzG9Zufcwzrg
- Twitter: https://twitter.com/pupstoken
- Telegram: https://t.me/pupsworldpeace
- Supported CEX: CoinEx, Binance, Coinbase, Poloniex
- Convenient for users to know in time: https://www.coinex.com/en/info/PUPS
Disclaimer: Please note that the information provided on this website is intended for informational purposes only. CoinEx assumes no liability for any financial losses resulting from cryptocurrency trading. It is advised that you conduct your own research.
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