Bitcoin is by far the most famous crypto currency in the world, but due to the lack of activity, the BRC-20 ecosystem is little known to the wider crypto public, and here are a few sentences about BRC - 20. The creator of Bitcoin Ordinals proposes an innovative alternative to the existing BRC-20 token standard in the world of Bitcoin. BRC-20, which was unveiled in March by an anonymous developer known as "Domo," achieved a staggering market capitalization of $1 billion within two months of its launch. Notable tokens like PEPE and ORDI were also created in the BRC-20 ecosystem.
BRC-20 enables the minting and transfer of fungible tokens via the Ordinals protocol on Bitcoin. However, it has a critical drawback, they flood the Bitcoin network with unnecessary and "junk" unspent output transactions (UTXO).
Simply put, they create a lot of digital clutter. UTXOs represent the remaining cryptocurrency balance in a wallet after a transaction and play a key role in preventing double spending on the Bitcoin blockchain.
To solve this problem, the inventor of Bitcoin Ordinal proposes a new approach called "Runes". Runes aims to use UTXO more efficiently, minimizing the creation of unnecessary transactions and reducing clutter on the Bitcoin network.