GlossaryAdvanced
Runes
A fungible token protocol built directly on Bitcoin, using its UTXO model, introduced as a more efficient alternative to earlier Bitcoin token standards.
Runes is a fungible token protocol built directly on Bitcoin, designed to work with Bitcoin's existing UTXO model (see Kaavon's "UTXO" glossary definition) rather than requiring a separate token-tracking layer, introduced specifically as a more UTXO-efficient alternative to earlier Bitcoin-based token approaches like BRC-20.
Like inscriptions and Ordinals (see Kaavon's "Inscription" glossary definition), Runes reflects a broader trend of building additional token functionality directly on top of Bitcoin's base layer, rather than only through separate sidechains or Layer 2 networks.
Examples
- Runes was specifically designed to be more efficient with Bitcoin's UTXO set than the earlier BRC-20 token standard.
- Runes, Ordinals, and inscriptions all reflect the same broader trend of building new functionality directly on Bitcoin's base layer.