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Bitcoin was renowned for its transactional features, which provided decentralization, transparency, and automation in a world where institutions still require paper-based documents. It was introduced to the market after the massive economic crisis, providing a way for people to regain their financial stability.
As Bitcoin progressed, it became an interesting tool for companies and giants like Microsoft and PayPal, not only accepting it as payment but also leveraging the underlying technology, allowing investors to know what is the price of Bitcoin. But Bitcoin has the potential to do more than that, as Casey Rodarmor, the creator of Bitcoin Ordinals, showed us recently. These NFT-like assets are truly revolutionizing Bitcoin, as only Ethereum and similar altcoins have made it this far to develop their own NFTs.
But we’ve also reached that step, and the following represents an even more interesting asset―Runes.
The creation of fungible tokens on the Bitcoin network
If you could invest in and trade with Bitcoin Ordinals as non-fungible tokens, you may be interested in the newest update to the network, introduced by the BRC-20 tokens that transformed into today’s Runes.
The BRC-20 standard was created to generate and transfer fungible tokens through inscriptions. Since they were newly introduced to the market, they caused network congestion, and the Rune update was needed to simplify the process. They’re compatible with the Lighting network and were introduced by the same creator of Bitcoin Ordinals.
The benefits of Runes
Although they’re not at their prime yet, the introduction of Runes is exciting news for the audience because users can now create NFTs on the Bitcoin blockchain without being limited by size for the sake of collectability, like in the case of regular NFTs. Therefore, it’ll be easier for users to own and trade them in similar communities.
At the same time, the technology behind Runes is sure to employ more enhanced security and stability within transactions and token creation, as it borrows Bitcoin’s security systems that help minimize vulnerabilities. Moreover, Runes’ system makes it more adaptable to changes on the Bitcoin network, so its quality won’t be affected as quickly as before.
How can you use Runes?
Runes might become a great deal for portfolio diversification, so learning how to buy and sell them is best at the moment. However, the technology compatible with Runes is currently not that expanded, so you’ll have to find a Bitcoin wallet compatible with Runes. Make sure to verify its security and features to ensure you’re not falling into the trap of false crypto networks.
Then, you may need to put some Bitcoins in the wallet for sending Runes and paying transaction fees, and check out Runes platforms and Pre-Runes collections that creators can send you. There are a few interesting projects on exchanges and networks already, so take your time choosing the most interesting and profitable. This is the best time to invest in and trade with Runes when they’re still in their beginning.
Runes will expand the Bitcoin ecosystem
In environments like crypto, expansion and development are always welcomed because they offer users and clients a diversified portfolio to choose from. Therefore, we expect more users to be attracted to these assets and benefit from low-cost transactions. Considering that Runes ensure the possibility of issuing security tokens, stablecoins, or any other type of asset, their usefulness on the network will boost the network to the maximum.
At the same time, more revenue will circulate within the network since an increasing usage of Runes tokens will boost the number of transactions and, therefore, fees. This will help miners considerably, as they’re already facing challenges maintaining their income steady after the halving of the mining reward.
But what’s most important is that Runes introduces a new era of innovation, with faster and more efficient developments, contributing to a safer and more effective crypto ecosystem. Moreover, it makes the Bitcoin blockchain more adaptable to trends and crypto movements.
Digital assets to improve DeFi
Decentralized finance (DeFi) is the future of the world’s economic system as it navigates transparency, accessibility, and immutability. While DeFi has the potential to change traditional systems and bring custody to people’s investments, it has also been an important part of the development of the crypto market, as it allowed developers to contribute to innovation.
NFTs, Ordinals, and Runes are only a part of what DeFi can achieve, as it blends blockchain technology, cryptocurrency, and software to enhance transactions and strengthen network security.
These assets make DeFi more approachable for every type of user interested in investments or trading, which helps bring DeFi closer to global adoption. Traditional financial systems are renowned for their lack of efficiency, transparency, and fairness, so DeFi is the perfect solution to mitigate these challenges.
Still, Runes are unpracticed
Despite their benefits, it will take some time for Runes to stir the market with their features, which is what currently happens with Ordinals, too. Taking the place of NFTs might be unimaginable in the media, but even Ordinals have been recently created. Their newness makes them less profitable in the long run as fees tend to increase to secure processing, which limits user adoption for the moment.
Therefore, investors should be careful regarding what assets they choose for their portfolios because safety and value come first when diversifying. At the same time, being interested in the latest technological advancements and discoveries in crypto is essential to keeping up with prices and trends, so finding a balance between the two considerations is essential. It may be possible that Runes will open the door to further innovations, so keep an eye on them.
What do you think about Runes?
Runes are part of the latest crypto market experiment to improve the transfer of fungible tokens, a project based on the Bitcoin blockchain in collaboration with the Lighting Network. Users can buy or sell Runes, and their contribution to the ecosystem might significantly change the crypto investment dynamic as they’re increasing the number of users interested in these assets and, therefore, creating some additional income.
