Developed by Casey Rodarmor in September 2023, Runes is the next step after Ordinals, which allowed for the creation of unique digital artifacts directly on Bitcoin’s smallest units, Satoshis. Runes addresses the inefficiencies of the current BRC-20 token standard by reducing "junk" UTXOs—unspent outputs that clutter the network and degrade user experiences.

Much of the excitement around Runes comes from Rodarmor’s influence and the potential to attract a larger audience. Unlike traditional NFTs limited by quantity to maintain value, Runes can be created in larger amounts, making it easier for more people to participate and potentially leading to broader adoption.

By leveraging Bitcoin's UTXO model for on-chain data storage, Runes inherits the blockchain’s strong security features and avoids common vulnerabilities. This setup also makes Runes more stable and resistant to the reorganizations of transaction histories on the network.

Runes uses the UTXO-based protocol to simplify the creation and management of new tokens. This not only attracts more developers but also enhances user experience by reducing network congestion. Metadata for transactions is stored in the OP_RETURN part of a transaction, which keeps the network efficient.

Runes benefits from compatibility with the Lightning Network, which enables faster and cheaper transactions, further enhancing the usability of the Bitcoin network.

Runes not only cleans up network congestion but also opens up new possibilities for Bitcoin's use, aligning with the mission to enhance economic freedom globally.