Can the Runes protocol become the mainstream issue coin standard in the crypto market?

The ERC20 protocol of Ethereum is undoubtedly one of the most influential token standards in the field of cryptocurrency. It not only promotes the development of the Ethereum public chain, making it the most mainstream smart contract platform in the crypto circle, but also paves the way for the rise of decentralized finance (DeFi). In addition, the ERC20 standard simplifies the project financing and entrepreneurial process, allowing investors and entrepreneurs to trade more directly and efficiently.

Currently, many emerging public chains are trying to replicate the successful model of Ethereum, hoping to establish their own token standards. To achieve this goal, two conditions generally need to be met: first, the market capitalization of the new public chain must be large enough to establish a solid foundation; second, the issue coin protocol needs to be innovative and cannot simply copy ERC20, but must obtain recognition from users and the community.

In this context, the Runes protocol seems to demonstrate potential beyond ERC20. Its main advantages include:

1. The market capitalization of Bitcoin accounts for about 50% of the entire crypto market, providing a solid foundation for Runes.
2. The fair issuance mechanism of BRC20 inscriptions has gained recognition from the community, and Runes has made improvements based on this.
3. The Runes protocol combines the advantages of BRC20 and ERC20, while serving as an asset issuance protocol on the Bitcoin mainnet.

The basic features of the Runes protocol include using the UTXO's op_return to describe token operations and information. It supports various methods of issuing tokens, allowing for both fair launches and reserving a portion of tokens for the team for financing.

Compared to BRC20, Runes is more flexible, supports team fundraising; transactions are more convenient, without the need for additional engraving transactions; it also supports concurrent transactions, improving efficiency.

Compared to ERC20, Runes is based on the Bitcoin network, which has a more solid foundation; as an emerging protocol, it has greater development potential; it is compatible with a fair issuance mechanism, aligning with the mainstream narrative of the current crypto market. Although ERC20 has a first-mover advantage in ecosystem and commercial applications, Runes can implement complex business logic through Bitcoin Layer2 solutions.

The Runes protocol has detailed implementation mechanisms for token deployment, minting, and transfer, providing flexible options for project parties and users. For example, during token deployment, different launch methods can be set, including complete control by the project party, completely fair minting, or a combination of both.

Although the Runes protocol shows great potential, it will take time and market testing to truly surpass ERC20 and become the mainstream issue coin standard. As the crypto market ecosystem continues to evolve, whether Runes can prove its value in practical applications will be a key factor in determining its future position.