Introduction
The emergence of Ordinals has fundamentally reshaped Bitcoin's narrative from a simple peer-to-peer electronic cash system to a more versatile platform. Developed by Casey Rodarmor, protocols like Ordinals and Runes have introduced innovative functionalities to the Bitcoin network, sparking a revolution in token issuance and distribution models. These advancements have not only brought technical innovation but also fostered active participation in community governance and developer support, enriching the Bitcoin ecosystem.
In this discussion, Casey Rodarmor, founder of Ordinals and Runes, alongside the OKX Web3 Wallet Bitcoin Ecosystem Team, shares insights into the current state and future directions of Bitcoin's technological evolution.
Key Takeaways from Casey Rodarmor
- Replicas on Other Blockchains: Inscriptions on non-Bitcoin blockchains are merely copies of BRC-20. Given the existence of native fungible token protocols on these chains, such replicas seem redundant.
- Bitcoin Layer 2 Solutions: Aside from the Lightning Network, all other Bitcoin Layer 2 solutions are "castles in the air"—lacking users, robust implementations, or clear paths to success. Ignoring them until they prove viable is prudent.
- Bitcoin’s Core Narrative: The ultimate and most crucial narrative for Bitcoin is its role as high-powered "digital gold" and hard currency. Everything else is peripheral.
- Future Developments: Bitcoin’s progress will primarily focus on functional upgrades and scalability enhancements.
Runes and Ordinals: Surpassing Expectations or Falling Short?
Casey’s Perspective:
"I don’t closely monitor adoption rates, growth metrics, or market valuations because I’m neither a promoter nor a speculator. My sole objective in creating Ordinals, inscriptions, and Runes was to design the best possible protocols. Adoption depends on factors beyond my control—except for addressing bugs and introducing new features.
Runes’ greatest achievement is its usability. Many users find it more straightforward than other standards, with software that performs reliably. Compared to BRC-20, Runes is simpler and more efficient—transfers require just one transaction instead of two."
The Current Stage of Inscriptions and Runes: What’s Next for Bitcoin?
Casey’s Outlook:
"Ordinals and Runes are in the hands of users. Future advancements will likely stem from improvements to Bitcoin itself. The market cycles will dictate attention shifts. Accumulate Bitcoin and wait patiently.
Inscriptions and Runes have established a fee market, which is vital for Bitcoin’s long-term health. Regardless of their popularity, they’ll continue to mitigate sell pressure on Bitcoin transactions."
OKX Web3 Wallet Team’s Insight:
"The 'inscription' trend has democratized fair launches for retail investors, significantly boosting Bitcoin’s visibility. Data from OKLink shows that miner revenue from fees exceeded 10% from December 2023 onward—a tangible benefit for miners. We believe Bitcoin’s inscription ecosystem and asset issuance protocols are entering a new phase of exploration and growth."
👉 Explore Bitcoin’s inscription ecosystem
Are Inscriptions or Runes Necessary on Other Blockchains?
Casey’s Response:
"Other blockchains already have native fungible token protocols, making Bitcoin-style inscriptions seem superfluous. If developers choose to build on Bitcoin, they must accept its slow, conservative development pace. My advice? Unless you’re passionate about Bitcoin core, find ways to innovate without altering the base layer."
The Need for Bitcoin Layer 2 Solutions
Casey’s Skepticism:
"Except for the Lightning Network, all Bitcoin Layer 2 solutions are unproven. None have significant users, viable implementations, or clear success trajectories. Until they demonstrate real-world utility, they’re distractions."
Risks from New Asset Protocols and Scaling Solutions
Potential Risks:
"If a protocol enables Ethereum-style automated market makers (AMMs) on Bitcoin, it could introduce harmful maximal extractable value (MEV). This risk must be taken seriously—Ethereum’s experience proves its negative impact."
OKX Web3 Wallet Team’s Observation:
"New asset protocols have caused severe congestion on Bitcoin’s network, disrupting other transactions. While Layer 2 networks aim to alleviate this, their diverse technical approaches remain unproven. We’re monitoring these developments closely."
👉 Stay updated on Bitcoin Layer 2 progress
Bitcoin’s Future: Innovation and Scalability
Casey’s View:
"Current soft fork proposals are intriguing, but their adoption remains uncertain."
OKX Web3 Wallet Team’s Focus:
"Bitcoin’s evolution will center on functional upgrades and scalability. Proposals like OP_CAT—which could reintroduce more opcodes—are gaining traction. We’re also tracking Layer 2 networks, RGB protocols, and Lightning Network advancements."
Bitcoin and Traditional Financial Markets
Casey’s Analogy:
"Bitcoin may resemble reserve currency or real estate in traditional markets."
OKX Web3 Wallet Team’s Analysis:
"Bitcoin ETFs mark a milestone in institutional adoption. By offering a regulated investment vehicle, they lower barriers for traditional investors, reinforcing Bitcoin’s role as 'digital gold.' Increased institutional involvement could stabilize prices and reduce volatility."
Bitcoin’s Long-Term Vision: Not the "Next Ethereum"
Casey’s Conviction:
"Ethereum’s ecosystem is a casino—flashy but devoid of real utility. Bitcoin’s enduring narrative is its strength as digital gold."
OKX Web3 Wallet Team’s Optimism:
"Bitcoin’s ecosystem is still nascent, but innovations like BRC-20 have ignited interest in its potential beyond store-of-value. We believe Bitcoin will carve out unique, native use cases distinct from Ethereum’s."
OKX Web3’s Contributions to Bitcoin’s Ecosystem
- Marketplace Support: OKX Marketplace facilitates trading for Ordinals, Atomicals, and Runes assets, with plans to expand protocol integrations.
- Developer Tools: UTXO management tools, Runes inscription utilities, and testnet faucets streamline development.
- DeFi Initiatives: Partnerships with projects like Babylon feature staking activities to educate users.
"We actively collaborate with Bitcoin builders—supporting new protocols through events like Cryptopedia and fostering dialogue with Ordinals and BRC-20 developers."
FAQ Section
Q1: Why is Lightning Network the only viable Bitcoin Layer 2 solution?
A: It’s the only one with real-world adoption, a working implementation, and a clear use case (instant, low-cost transactions).
Q2: Will Runes replace BRC-20?
A: Runes offers efficiency advantages, but BRC-20’s first-mover status means coexistence is likely.
Q3: How do inscriptions benefit Bitcoin miners?
A: They create a sustainable fee market, reducing miners’ reliance on block rewards.
Q4: What’s the biggest risk to Bitcoin’s scalability?
A: Congestion from speculative asset protocols could deter legitimate usage.
Q5: Are Bitcoin ETFs a bullish signal?
A: Yes—they legitimize Bitcoin for institutional portfolios, potentially driving long-term price stability.
Q6: Can Bitcoin support smart contracts like Ethereum?
A: Limited opcodes restrict functionality, but Layer 2 solutions may enable simpler use cases.