Franklin Rune Report: Rune Issuance to Become Standardized Tokenization in the Bitcoin Ecosystem.

Franklin Fund Team Releases Research Report on Runes Protocol on Twitter, titled “Runes: Bitcoin’s New Homogeneous Token Standard”, introducing to its clients what Runes are and their origins, and illustrating their potential, which may be significant, through Bitcoin’s market value. (This article does not constitute investment advice). This article is compiled and translated by Chain News. Should there be any doubts, please refer to the original text. Advertisement – Please scroll down for the rest of the content. Contents: Toggle Bitcoin’s Non-Fungible Token Standard: Ordinals The Highly Anticipated Bitcoin Homogeneous Token Standard: Runes Runes Market Value Still Very Small: Compared to other token markets Runes Investment Risks: Investing in Runes involves risks The report points out that NFTs initially gained popularity on Ethereum with the ERC-721 standard. However, there has not been a widely adopted NFT standard on the Bitcoin ecosystem for years until Casey Rodamor, a Bitcoin developer, developed the Ordinals protocol. Assets data that adopt the Ordinals protocol are recorded on the blockchain’s raw data, and each minimum unit of Bitcoin (Sats) is assigned a unique identifier (ordinal). This is different from other NFT standards on other blockchains, which usually store some off-chain data on centralized off-chain servers. Since the release of the Ordinals protocol by Casey in December 2022, until April of this year, the market value of Ordinals assets has grown significantly to about 2 billion US dollars. Market value changes of Ordinals-related assets The growth of Ordinals has prompted many developers to rethink the potential of the Bitcoin blockchain, “If non-fungible tokens are possible, then what about homogeneous tokens?” Currently, the most anticipated homogeneous token project is the Runes protocol launched by Casey. The Runes protocol introduces a new token standard on the Bitcoin network Layer1, which improves the issues of current standards, such as the generation of garbage data and security issues in BRC-20. (What are the security risks associated with the incomplete infrastructure of Bitcoin’s BRC-20?) BRC-20 is designed based on an account model, similar to Ethereum’s ERC-20. Therefore, the destruction and minting processes of these tokens generate a large number of garbage UTXOs, leading to blockchain expansion and increased costs. Runes protocol has several key improvements on this. The most important point is to avoid creating useless UTXO data and being compatible with the Lightning Network without relying on off-chain data, making it a more native “ERC-20” standard in the Bitcoin ecosystem. Runes improves efficiency through its UTXO-based design. The main difference between BRC-20 and Runes is that the former satisfies the need for homogeneous tokens on Bitcoin using existing protocols, while Runes is a homogeneous token standard specifically built for the Bitcoin ecosystem. Casey scheduled the release of the Runes protocol on the same day as Bitcoin’s halving to commemorate the community’s ideals for the Bitcoin ecosystem. It is expected that there will be a “name grabbing” battle on that day. The report points out that compared to Ethereum and Solana, the market for substitute tokens in the Bitcoin ecosystem is relatively small, especially compared to the market value of BTC. Market value of native tokens in Bitcoin, Ethereum, and Solana ecosystems compared to the market value of homogeneous tokens in the ecosystem With the introduction of more efficient token standards like Runes, the Bitcoin ecosystem will have an advantage, narrowing the gap between its market value of homogeneous tokens and other blockchains. On the other hand, if DeFi in the Bitcoin ecosystem is to experience exponential growth, a widely adopted homogeneous token standard is also a prerequisite. Recommended reading: In addition to the inscription, how does the Runes protocol (Rune) drive market speculation again? Reason for recommendation: This article provides a deeper introduction to the origin of Runes as a result of Casey’s dislike for BRC-20, while listing several well-known competing projects that improve Runes, which can be read in conjunction with this article for consolidation. As a professional investment fund like Franklin, it never forgets to remind clients of the investment risks. The risks of Runes include loss of private keys, regulations, technical vulnerabilities, high volatility, and conflicts of intellectual property rights. Investing in Runes involves risks. (This article does not constitute investment advice). BTC Casey Rodarmor Ordinals Runes Homogeneous tokens Runes

Further reading Thinking about the appropriateness of Bitcoin’s improved proposal governance from inscriptions and BIP-119 The launch of Ordinals 0.17.0 version: Enhancing the development functions of inscriptions and runes