What it is
The Runes protocol is a fungible token standard built on the Bitcoin blockchain, launched in April 2024. It aims to provide a more efficient and streamlined way to create and manage fungible tokens compared to the earlier BRC-20 standard. Unlike BRC-20, which relies on Ordinals inscriptions for each token transfer, Runes uses a UTXO-based model, integrating directly with Bitcoin's transaction output system. This design is intended to reduce blockchain bloat and network congestion.
The Runes protocol made significant headlines around the 2024 Bitcoin halving, as it launched simultaneously, leading to a surge in transaction fees and network activity. News reports often compare Runes to BRC-20, focusing on its technical improvements and potential for broader adoption of fungible tokens on Bitcoin. Readers need to understand that Runes offers a new method for token creation, which can influence network fees and the types of assets available within the Bitcoin ecosystem.
Why it matters
Runes offers a potentially more efficient way to create fungible tokens on Bitcoin. Its adoption can impact network fees and the variety of assets available on Bitcoin.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice