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Technical Design

Outlining the core components of BitRunes gives an understanding on the project and also more core functionalities of the Runes standard:

1. Bridging:​

We provide a secure medium for users to assets from the specified chains to the Rune ecosystem on Bitcoin. This bridge involves a lock and release mechanism on the origin chain and Bitcoin. On Ethereum for example, when ETH is deposited into the bridge contract, a corresponding amount of Runes is minted on Bitcoin and assigned to a designated UTXO controlled by the bridge.

2. Etch Crafting:​

When a Rune token is minted, it is referred to as etching. Users can define and issue new Rune tokens with our Rune Crafter. This technology interacts with the Bitcoin issuance functionality allowing users to provide details such as the Rune name, symbol, etching address, supply cap, etching supply, and etching limit. The Rune Crafter initiates a transaction containing the issuance protocol message and broadcasts it to the Bitcoin network for validation and creation of the new Rune token.

3. Analytics:​

BitRunes gathers and analyzes useful data related to Rune activity on the Bitcoin blockchain by crawling on the Bitcoin explorer to monitor Rune transactions identifying trending Runes, newly minted Runes and metrics. BitRunes processes this data and presents it to users through interactive dashboards.

4. Rune Market:​

This marketplace facilitates trading between different Rune tokens. The Rune Market operates by securely holding Rune UTXOs and enabling atomic swaps between users. Users interact with the marketplace through user interfaces that connect to a Bitcoin script, allowing them to specify the Rune pair they wish to trade, the desired amount, and the rewards given to participants.

5. Wallet:​

This digital wallet provides users with a secure and user-friendly interface to manage their Bitcoin and Rune holdings. The Rune wallet interacts with the Bitcoin blockchain through libraries and nodes, enabling users to:

  • Transfer Runes from one Bitcoin address to another. This involves creating transactions that spend UTXOs containing Runes and designate the recipient's address as the output.

  • Check Rune balance across different UTXOs by parsing UTXO data and associating them with the corresponding Rune types. View portfolio of various Rune holdings. The wallet aggregates balance information across all Rune types associated with the user's wallet addresses.

  • Check Bitcoin balance on multiple accounts created by the end user.