– now likely to happen Friday or early Saturday. But a large number of the 15-year-old blockchain's developers and users are turning their attention to an event that's expected to take place immediately following the halving: the launch of Casey Rodarmor's Runes protocol.
Ordinals allowed attaching pieces of data known as"inscriptions" to satoshis, the smallest denomination of BTC – effectively allowing for non-fungible tokens to be minted and traded on Bitcoin, an activity that was previously only available on other blockchains. Soon afterward, another developer, Domo, unveiled"BRC-20" – a standard for creating fungible, or tradable, tokens, another feature that hadn't previously existed on Bitcoin.
"To transfer a BRC-20 token takes three transactions due to the way inscriptions work. You need two transcriptions to create the inscriptions and one to transfer the resulting inscription to the recipient," Rodarmor told CoinDesk in an interview. The security of Bitcoin is tied to the difficulty of the network, or the number of hashes needed to add a new block. Should the hash rate fall because the block reward has been slashed by 50%, among many potential reasons, the network would be less secure, since it would be easier to add new blocks.
The halving of block rewards would then need to be offset by an increase in BTC's price, incentivizing more mining activity and thereby increasing the hash rate. Should this not happen though, fees would need to increase instead. The new protocol extends the UTXO concept through the ability to hold a balance in any number of Runes tokens. A single Rune can contain 10 units of Rune A, 100 units of Rune B and 1,000 units of Rune C, and so on, with any UTXOs unspent by a transaction destroyed.
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