What are Ordinals, BRC20, Runes?

What are Ordinals?

Ordinals is a protocol developed by Casey Rodarmor that allows for the numbering and tracking of each Satoshi (the smallest unit of Bitcoin) in transactions by assigning them a serial number. Users can attach additional data such as images, videos, and text to Bitcoin blocks through the Ordinals protocol. This makes it possible to create NFTs (non-fungible tokens) on the Bitcoin blockchain, as each Satoshi is unique and can carry additional information.

What are BRC-20 tokens?

BRC-20 is a token standard built on the Ordinals protocol, launched by an anonymous developer known as domodata. BRC-20 tokens enable the deployment, minting, and transfer of tokens on the Bitcoin blockchain by writing token-related information (such as the token name and total supply) into Satoshis using a standardized JSON format. This token standard is similar in concept to the well-known Ethereum ERC-20 token standard but is based on the Bitcoin blockchain.

What are Runes?

Runes is a protocol developed by Casey Rodarmor as an alternative to the BRC-20 standard. It is a simple fungible token (FT) protocol based on UTXO (Unspent Transaction Output) that aims to provide Bitcoin users with a better experience. Runes leverages UTXO technology, making it easier to integrate with other Bitcoin features like RGB or Lightning Networks. It was created to address concerns about the impact of BRC-20 tokens on the Bitcoin blockchain and offers a streamlined approach to issuing fungible tokens on Bitcoin.