Bitcoin (BTC) network’s transaction-related gas fees have recently shown a clear increase, and Abra Global CEO Bill Barhydt argues that this is related to Runes, a new token standard emerging on the Blockchain.
Bitcoin Gas Fee, Runes, and Ordinals Connection
Described as a historic event, the Bitcoin halving occurred early today, and Runes, introduced by Casey Rodamor, seems to be capturing all the attention. Barhydt stated that the emergence of this token standard has caused a significant increase in Bitcoin transaction fees.
Runes is positioned with the expectation of offering an easier and more efficient way for users to create fungible tokens on the Bitcoin blockchain. In other words, according to Barhydt, the pioneering role of the token standard is to facilitate the emergence of fungible tokens in Bitcoin.
Moreover, it was revealed today that the most common NFTs currently are the ERC-20 tokens on Ethereum.
According to Rodamor’s statement, although related to the launch of Ordinals, Runes has a quite different structure that allows the creation of Non-Fungible Tokens (NFTs).
To explain Ordinals, it is known for allowing people to write data to the smallest units of Bitcoin (i.e., satoshis) to create high-value assets.
CEO Comments on Runes
Runes also offers the use of small, lightweight transactions called “decrees.” This feature generally facilitates the transfer of tokens across the Bitcoin network without creating a negative impact.
To add a bit more about Runes, it also utilizes Bitcoin’s UTXO model and the OP_RETURN transaction code to simplify the emergence and management of fungible tokens.
Abra Global CEO:
Each Rune transaction can define multiple transactions between different Runes. In a token transfer situation, the Runes protocol will split the UTXO into multiple new UTXOs according to the instructions in the OP_RETURN data.
While all this was happening, eyes were on which direction the Bitcoin price would move after the halving. The price of Bitcoin was at $63,500 when the halving occurred last evening.
As of writing, the price of BTC continues to trade at $65,000, which represents a 2% increase.
