News & Analyses

Runes Protocol launches at block 840,000, catapults Bitcoin network transactions past one billion threshold

  • Bitcoin network has processed over one billion transactions since network debuted 15 years ago.
  • Transaction 1,000,000,000 was processed in block 842,241 at 9:34 pm UTC on May 5.
  • Much of recorded demand came from Runes Protocol launch at block 840,000.

Runes Protocol, a new fungible token standard launched by the creator of Bitcoin Ordinals protocol, debuted on April 20, the same day as the fourth Bitcoin halving. As reported in a previous FXStreet publication, the new standard has recorded significant support, enough to see the Bitcoin network hit a milestone.

Also Read: Runes token standard diminishes BRC-20 hype, thwarts Ordinals engagement a day after launch

Runes Protocol steers Bitcoin network to one billion transactions

Bitcoin network attained the one billion transaction threshold on May 5, with Clark Moody’s Bitcoin dashboard showing that transaction 1,000,000,000 was processed in block 842,241 at 9:34 pm UTC on May 5.

Much of the demand that was recorded came from the Runes Protocol, accounting for 81.3%, after it launched at the halving at block 840,000. After the halving, and effectively the launch of the Runes Protocol, daily transactions on the Bitcoin network spiked. On April 23, transactions recorded a peak of 926,000 transactions processed.

Runes is the brainchild of the creator of Ordinals, Bitcoin developer Casey Rodarmor.  It represents a new lens for viewing Bitcoin in that it does so with shitcoins. Unlike BRC-20, which uses Ordinals protocol, Runes tries to make the process of creating fungible tokens on Bitcoin more efficient.

Possible ways that Runes Protocol contributed to one billion transactions

By enabling off-chain transactions, Runes Protocol helps reduce congestion on the Bitcoin network, allowing more transactions to be processed quickly and cost-effectively. This scalability solution contributes to the overall growth and adoption of Bitcoin by providing a way to handle a higher volume of transactions. In so doing, it helped the network reach the milestone of one billion transactions.

Furthermore, by leveraging the Runes Protocol, users can enjoy faster confirmation times and lower fees. This makes Bitcoin transactions more accessible and practical for everyday use. This improved user experience encourages more people and businesses to participate in the Bitcoin network, ultimately contributing to the increasing number of transactions and the overall success of the network.

The milestone of one billion Bitcoin transactions is significant as it represents the increasing adoption and usage of Bitcoin as a form of digital currency. It demonstrates the growing acceptance of Bitcoin in various industries and among individuals worldwide.

Additionally, reaching this milestone highlights the scalability and efficiency of the Bitcoin network in processing transactions securely and quickly. Overall, the one billion transaction mark signifies the maturation and ongoing evolution of the Bitcoin ecosystem.

One billion transaction count independent of Lightning Network

Notably, the attainment of the one billion transactions does not include the ones that took place on Lightning Network. Coinbase, the largest cryptocurrency trading platform in the US, rolled out the Lightning Network on April 30. It is a Layer 2 (L2) technology and payment protocol lauded for enabling instant, low-cost transfers of BTC.

The Lightning Network makes BTC transactions move as fast and as cheap as possible as it offloads some transaction “traffic” to the Lightning Network’s L2 blockchain. In so doing, the core Bitcoin blockchain (L1) is able to move faster. 

Source link

News & Analyses Analyses