Tech

Core Elements

Interchangeability: Contrary to unique inscriptions, Runes provide a homogeneous token model, ensuring interchangeability across various applications.
Runestones: Serve as the medium for Rune protocol messages within Bitcoin transaction outputs, marking a significant step towards embedding complex functionalities directly into Bitcoin's framework.

Script Pubkey Structure: Incorporates a unique sequence starting with OP_RETURN followed by OP_13, allowing for advanced data structuring within transaction outputs.
Runestone Composition: Outlines the process of concatenating data pushes into 128-bit integers, forming the basis for Runestone interpretation.
Transaction Limitations: Imposes a restriction that a single transaction may contain only one runestone, ensuring clarity and preventing confusion in transactions.

Creation of Runes: Details the etching process as the genesis method for Rune creation, setting immutable properties that define the essence of each Rune.
Naming Conventions: Introduces a system for Rune names, incorporating the use of letters A through Z and optional spacers for enhanced readability, while ensuring name uniqueness regardless of spacer placement.
Divisibility and Symbolism: Addresses the divisibility aspect of Runes and assigns currency symbols for representation, adding layers of detail and functionality to the tokens.

Open Mint Terms: Describes the conditions under which a Rune's minting is considered open, adding a layer of strategic decision-making to the process.
Cap and Amount: Defines the cap as the limit on minting occurrences and specifies the fixed amount of new units created per mint transaction, dictating the supply dynamics of each Rune.

Input to Output Transfer: Explores how Runes contained in transaction inputs or generated through premine or mint are allocated to transaction outputs, emphasizing the fluidity and flexibility in Rune circulation.
Edicts: Introduces a method for directing the transfer of Runes within transactions through specified allocations, further refining the control over Rune distribution.

Burning Mechanism: Details the procedure for Rune burning, contributing to the deflationary aspect of certain tokens by removing them from circulation.
Cenotaphs for Malformed Runestones: Establishes the concept of cenotaphs as a response to malformed runestones, providing a fail-safe mechanism that impacts Rune mintability and transferability.

Reference Implementation: Clarifies that the ord reference implementation serves as the definitive specification of the Runes protocol, ensuring that interpretations align with actual protocol behavior.

Detailed Execution Steps: Breaks down the Runestone execution process, from locating the Runestone output to parsing and applying runestone data, illustrating the comprehensive approach to Runestone interpretation.
Minting and Transferring: Elucidates the conditions and mechanics behind Rune minting and transferring processes, providing a clear understanding of how Runes circulate within and across transactions.

Last updated 1 year ago