> For the complete documentation index, see [llms.txt](https://startower.gitbook.io/star-tower-chain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://startower.gitbook.io/star-tower-chain/btc-wallet/what-is-runes-protocol.md). # What is Runes Protocol Runes Protocol: Leading the Innovation of Bitcoin Token Ecosystem #### What is Runes Protocol The Runes protocol brings an innovative approach to homogenous tokens to the Bitcoin ecosystem, complementing traditional protocols such as BRC-20, Taproot assets, RGB, Counterparty, and Omni Layer. Unlike other protocols, Runes adopts a unique UTXO (unspent transaction output) model, making it unique in the Bitcoin network. This model is a fundamental concept in Bitcoin, representing the amount of digital currency available for spending, and is essential for decentralized tracking of ownership and transactions. The Runes Protocol is unique in that it can store any number of runes in a single UTXO, unlike the restrictions adopted by other token protocols. In the Bitcoin network, this UTXO-based approach provides users with a more streamlined and integrated experience while enhancing the functionality of the blockchain and providing a way for new asset issuance and management. This expansion is not only a technological advancement, but also a step towards the wider adoption of Bitcoin. #### Background of Runes Protocol The Runes protocol was founded by the prestigious Casey Rodarmor, who is widely known for the disruptive Ordinals protocol. The idea of ​​Runes is to create a protocol with the purpose of introducing transaction fees to attract developers and users to Bitcoin. A key part of this is to design a protocol with a low on-chain footprint to promote responsible control of UTXOs, which in theory helps solve the UTXO backlog problem caused by protocols like BRC-20. The Runes protocol is based on a UTXO system that matches the structure of Bitcoin and avoids creating any unnecessary UTXOs, making the whole process simpler and without the need to run servers. Runes is conceived as a basic homogeneous token processing method based on UTXO to provide a better user experience on Bitcoin. Its simplicity, lack of reliance on off-chain data, lack of mainnet tokens, and compatibility with Bitcoin's UTXO model make it different from other protocols such as BRC-20, RGB, Counterparty, Omni Layer, and Taproot Assets. This design is intended to attract users and developers to use Bitcoin, potentially promoting the wider application of Bitcoin. #### Differences between Runes protocol and other Bitcoin protocols **The difference between Runes and BRC-20:** **1. Data processing and performance impact:** The Runes protocol effectively reduces the data carrying burden of Bitcoin nodes by simplifying transaction steps and avoiding the generation of excessive UTXOs (useless transaction outputs). The BRC-20 protocol may generate a large amount of useless data because each token operation requires initiating a specific transaction on the Bitcoin chain, which increases the size of the UTXO set and has a certain impact on the performance of the Bitcoin network. **2. Design architecture and functional scalability:** The Runes protocol is designed based on UTXO and can be used with other UTXO-based functional extension layers to implement smart contracts and other advanced functions. BRC-20 is relatively limited in compatibility and scalability, and has weak integration capabilities with other functional extension layers. **The difference between Runes and BRC-20:** **1. Simpler and more efficient operation:** Fewer transactions: Runes only requires one transaction to deploy, mint, and claim tokens, while BRC-20 requires two or three transactions. Runes does not generate redundant, useless UTXOs. Improved transfer efficiency: Runes supports transfers to multiple recipients at the same time, and can transfer multiple Runes tokens, while BRC-20 only supports one recipient and one token per transfer. **2. Stronger compatibility and scalability:** Compatible with UTXO Layer 2 Protocol: Runes’ UTXO-based design enables it to be better compatible with UTXO-based Bitcoin Layer 2 protocols such as Lightning Network and CKB, which is achieved through “UTXO isomorphic binding”. Support SPV (Simple Payment Verification): Users can use SPV wallets to manage and use Runes tokens, and enjoy a light, simple and fast transaction experience. BRC-20 cannot achieve this function. Support soft fork upgrade: In comparison, Runes has stronger scalability and can be upgraded through soft forks, while BRC-20 does not have this feature. #### Runes Release (etch) Rules The process of issuing Runes tokens is called "etching". The name of each Rune is unique and can be composed of capital letters AZ and the "•" symbol. In order to balance the release rhythm of Runes and prevent popular and short Runes names from being quickly occupied in the early stages, the Runes protocol requires the name length to be at least 13 letters, such as "PEPE•IS•AWESOME", during the first four months of launch. Thereafter, approximately every four months, the minimum name length is reduced by one letter until the next halving event, at which time single-character runes can be created (26 total). Runes issuance uses a Commint-Reveal mechanism to prevent miners from knowing the name of Runes in advance and rushing to buy them. The unit of Runes token can be a traditional currency unit, such as $, or any Unicode emoticon. This design makes Runes token more interesting and personalized, such as "100 PEPE•IS•AWESOME" #### When will Runes be released? Casey announced the launch time of the Runes protocol on the mainnet at the Taipei Blockchain Week event. It will be released at the Bitcoin block height of 840,000, which is the time of BTC's fourth halving, which will probably be in late April.