Developer Story 03 | Ordinals and Runes Protocol Founder Casey & OKX Web3: The Future of Bitcoin

The birth of Ordinals has allowed Bitcoin to break away from the narrative of a single peer-to-peer electronic cash system. Subsequently, various asset protocol standards based on Ordinals, such as XRC-20, were created, leading to an explosion of inscriptions and runes, and triggering a bottom-up transformation in token issuance and distribution models. Ordinals and Runes were developed by Casey Rodarmor, and these protocols bring innovative functionalities to the Bitcoin network. Casey Rodarmor's contributions to the Bitcoin community are reflected not only in technical innovations but also in his active participation in community governance and developer support. His work encourages more developers to engage in the Bitcoin ecosystem, promoting the development of Bitcoin technology and the popularization of its applications.

This issue is the 03rd edition of the "Developer Stories" column, featuring the perspectives of Casey, the founder of the Ordinals and Runes protocols, and the Bitcoin ecosystem team from OKX Web3 wallet, to better understand and comprehend the Bitcoin world. The questions in this issue cover various aspects, including the latest developments of the Ordinals and Runes protocols, Bitcoin's evolution, developer engagement, and community governance, aiming to gain deeper insights into the thoughts and plans of Bitcoin's core developers.

Overview of the Core Points of This Article

1. Inscriptions on other blockchains are merely copies of BRC-20; considering that other blockchains already have native fungible token protocols, these copies seem redundant.
2. All Bitcoin Layer 2 solutions, except for the Lightning Network, are "castles in the air," with none having users, good implementations, or clear paths to success. It is wise to ignore them until they are truly realized.
3. The only important narrative for Bitcoin is its high-energy "digital gold" and hard currency status; everything else is secondary.
4. In the future, Bitcoin's development will primarily revolve around upgrading its functionalities and scaling.

So far, have Runes and Ordinals developed beyond expectations or below expectations?

Casey: To be honest, I haven't paid much attention to adoption rates, growth rates, or market value because I'm not a promoter or speculator. My only goal in creating Ordinals, inscriptions, and Runes was to build the best protocol. As for adoption, aside from fixing bugs and adding new features, it is entirely up to fate. Some people complain that the token symbol names are too long, but I don't see that as an issue because short symbols will all be unlocked in the next four years; everyone needs to be patient!

The greatest achievement of Runes and Ordinals is their ease of use. Many people have reported that Runes are very convenient compared to other standards, and the software runs well, which is very positive feedback for me. Runes is a complete protocol that was released with clear specifications and open-source implementations, including wallets, indexing, and browsers. I haven't delved deeply into other fungible token protocols, but compared to BRC-20, Runes is simpler and more efficient because transfers only require one transaction instead of two.

What stage are the narratives of inscriptions and runes at? How will the Bitcoin ecosystem regain attention in the next phase?

Casey: Ordinals, inscriptions, and Runes are all in the hands of users. Future technological developments will almost certainly come from improvements to Bitcoin itself. Bitcoin leads the market, and the market has cycles. Accumulate Bitcoin and wait patiently.

In any case, inscriptions and runes have established a "fee market," which is very important for the long-term health of the Bitcoin network. I believe that regardless of their popularity, they will always provide some support for reducing selling pressure on Bitcoin transactions.

OKX Web3 wallet Bitcoin ecosystem team: On one hand, the "inscription" track has brought a new model of Fair launch to retail investors, attracting significant attention to the Bitcoin ecosystem; on the other hand, according to OKLink data, Bitcoin miners' revenue from transaction fees has exceeded 10% since last December, providing tangible benefits to miners. I believe that driven by the interests of the Bitcoin ecosystem community, the inscription ecosystem and asset issuance protocols on Bitcoin will enter a new period of exploration and development. (For more data, click here)

Is it necessary for other public chains to develop inscriptions or runes besides Bitcoin?

Casey: To my knowledge, inscriptions on other blockchains are merely copies of BRC-20; considering that other blockchains already have native fungible token protocols, these copies seem redundant.

However, if developers choose to continue building within the Bitcoin ecosystem, they must accept that Bitcoin's development progresses slowly and conservatively. My advice to new developers is to find ways to build your projects without changing the underlying network unless you particularly enjoy working on the Bitcoin core.

You have previously held a wait-and-see or even skeptical attitude towards Bitcoin Layer 2; does Bitcoin need Layer 2?

Casey: All Bitcoin Layer 2 solutions, except for the Lightning Network, are "castles in the air," with none having users, good implementations, or clear paths to success. It is wise to ignore them until they are truly realized.

Do new asset issuance protocols and scaling solutions pose new risks to the Bitcoin network?

Casey: The only potential risk is if a certain protocol expands Bitcoin and allows for the development of automated market maker (AMM) schemes similar to Ethereum, which could lead to harmful maximum extractable value (MEV) issues. I take this risk very seriously because we have already seen its negative impact on Ethereum.

OKX Web3 wallet Bitcoin ecosystem team: The various asset issuance protocols that have emerged on the Bitcoin network have recently gained significant popularity, with many users trading these assets on the OKX Marketplace. However, this has also caused severe congestion on the Bitcoin network, affecting other transaction activities. From this perspective, excessive speculation on new assets has some negative impacts on the Bitcoin network. Therefore, various "Layer 2 networks" for Bitcoin have emerged to alleviate the pressure on the Bitcoin mainnet. Currently, each has its own technical solutions, and it cannot yet be clearly stated which solution is better; we are still in an early stage.

What are the main directions for technological innovation in Bitcoin's future? What developments are worth paying attention to?

Casey: I don't know which proposals will ultimately be adopted, but I believe that the current batch of soft fork proposals is reasonable and interesting.

OKX Web3 wallet Bitcoin ecosystem team: In the future, Bitcoin's development will primarily revolve around upgrading its functionalities and scaling. The Bitcoin network's support for more opcodes will enable more complex protocols, such as the recent high discussion around OP_CAT, which may be restarted on the Bitcoin network. At the same time, the Bitcoin network's small capacity and slow speed are gradually unable to meet current user demands, leading to many Bitcoin scaling solutions and staking proposals, all of which are worth paying attention to. For example, there are currently many "Layer 2 networks" in the Bitcoin ecosystem, each with different technical solutions, still in the exploratory phase, and we are continuously monitoring them.

Meanwhile, we are also maintaining communication with developers from different fields, paying attention to other technological advancements, such as RGB-related protocols, the Lightning Network, and Bitcoin-related staking protocols.

How do you view the relationship between Bitcoin and traditional financial markets?

Casey: Bitcoin may increasingly resemble a reserve currency and hard currency, potentially taking on a role similar to that of real estate in traditional financial markets.

OKX Web3 wallet Bitcoin ecosystem team: The approval of Bitcoin spot ETFs means that Bitcoin is beginning to gain broader recognition in traditional financial markets. Through ETFs, traders can indirectly hold Bitcoin without having to directly purchase and store cryptocurrencies. This helps lower the investment threshold, allowing more institutions and individuals to participate. For those who hesitated due to regulatory or custody issues, ETFs provide a regulated and familiar investment tool. This will greatly enhance Bitcoin's legitimacy and credibility.

The relationship between Bitcoin and traditional financial markets will become closer. ETF products make it easier for Bitcoin to be included in investment portfolios, especially in diversified institutional portfolios. For example, retirement funds, pension funds, and wealth management companies may include Bitcoin ETFs in their asset allocations. This integration will further solidify Bitcoin's role as "digital gold" and a hedge against inflation.

In the long run, the approval of ETFs may trigger more institutional funds to enter the Bitcoin market. As more traditional financial institutions join, it may drive Bitcoin prices further up. At the same time, this also means that the Bitcoin market will become more mature and stable, freeing itself from past extreme volatility.

Bitcoin will not become the next Ethereum; what is your long-term vision for Bitcoin?

Casey: The Ethereum ecosystem is not thriving, or rather, its prosperity is akin to that of Las Vegas—an empty casino that provides no real utility to anyone. The only important narrative for Bitcoin is its high-energy "digital gold" and hard currency status; everything else is secondary.

OKX Web3 wallet Bitcoin ecosystem team: Currently, the Bitcoin ecosystem is still in its early stages, but the popularity of BRC-20 has sparked public enthusiasm for more narratives around the Bitcoin ecosystem. Since BRC-20, many builders are still exploring more possibilities for BTC, aiming for Bitcoin to possess attributes beyond just being "digital gold." However, in the long run, through various community and builder innovations, Bitcoin will find its own unique application scenarios that differentiate it from Ethereum, ushering in its own spring once again.

The final question for OKX Web3: What have you done in terms of building the Bitcoin ecosystem?

OKX Web3 wallet Bitcoin ecosystem team: The OKX Web3 wallet actively supports the construction of the Bitcoin ecosystem, with multi-platform (App, plugin, Web) support for Bitcoin and variant Bitcoin, as well as various Bitcoin Layer 2 networks (B² Network, Merlin Chain) and support for multiple protocols such as Ordinals, Atomicals, and Runes. We are also actively collaborating with builders from other Bitcoin ecosystems.

1) From the perspective of the Marketplace, OKX Marketplace supports trading of Ordinals, Atomicals, and Runes assets, as well as assets from various protocols, with plans to expand to more protocols in the future.

2) From a tools perspective, OKX also offers professional tools for inscribing, splitting, or merging Runes, as well as UTXO management tools. The OKX lead center also provides developers with access to test tokens specifically for the BTC ecosystem.

3) From a DeFi perspective, OKX has partnered with Babylon to create a dedicated Babylon gameplay area, and Cryptopedia has launched multiple staking activities related to the Babylon ecosystem to help users better understand the Babylon ecosystem.

We are also supporting Bitcoin developers. On one hand, we provide support for various projects in the Bitcoin ecosystem and actively engage in collaborations. For example, through sections like Drops and Cryptopedia, we collaborate with various new projects on Bitcoin to help more users understand and participate in the Bitcoin ecosystem. On the other hand, our collaboration and communication with developers in the Bitcoin ecosystem are quite close; for instance, we regularly communicate with developers of Ordinals, BRC20, and Atomicals to understand the latest developments of the protocols/projects and provide support for their growth.

About the "Developer Stories" Column

Web3 developers have made significant contributions to the development of the crypto industry. Their innovative spirit and technical capabilities inject lasting vitality and momentum into the entire industry's growth, not only improving the technology itself but also supporting future application scenarios and business models. However, despite their activity, they are often overlooked. The "Developer Stories" column, launched by OKX Web3 and ChainCatcher, aims to understand the development trajectory, technical insights, latest dynamics, market changes, and hot comments of different public chain ecosystems from the developers' perspective through dialogues with core developers of various public chains and the OKX Web3 technical team, enhancing the voice of Web3 developers, getting closer to these most active and interesting individuals, and providing them with maximum support.