Omnity Protocol Unveils Innovative Integration for Low-Fee Runes Trading
By Tanzeel Akhtar
Updated:
April 29, 2024 23:57 EDT
|
1 min read
Omnity Protocol is set to launch a groundbreaking integration that enables the trading of Runes tokens without the need for “risky cross-chain bridges” or any gas or transaction fees.
According to an announcement, Omnity’s interoperability protocol is built on the Internet Computer (ICP) and is seamlessly integrated with Runes, a Bitcoin metaprotocol that utilizes the Unspent Transaction Output (UTXO) model to facilitate the exchange of fungible tokens on the Bitcoin network.
Bitcoin Halving Leads to Unprecedented Surge in Fees
Since the Bitcoin halving, it is estimated that Runes have accounted for up to 68% of Bitcoin transactions. However, the fees earned by Bitcoin miners have started to decline.
Similar to BRC-20s, Runes is a protocol that operates on the Bitcoin network and pays fees in Bitcoin to generate new tokens. Runes utilizes the UTXO model to “etch” new tokens on Bitcoin, which differs from Ordinals’ “inscription” account model, as explained in a protocol explainer by Rodarmor.
The integration introduced by Omnity Protocol aims to enable the trading of Rune tokens without the need for gas or transaction fees. It allows for seamless token swaps without relying on risky cross-chain bridges. Omnity claims to be the first protocol to support Runes interoperability and achieves this by integrating Runes and offloading the burden of native Bitcoin transactions onto ICP.
Since its launch on April 20th, Runes has processed over 2.38 million transactions, according to a Dune Analytics dashboard shared by blockchain research firm Crypto Koryo.
Louis Liu, the founder of Omnity, stated in a press release, “As advocates for blockchain’s mission to safeguard public goods, we are proud to leverage the Internet Computer to alleviate congestion on the Bitcoin network. This enhances Runes’ transaction efficiency and reduces costs, thereby supporting the scalability and economic functions of Bitcoin.”
Understanding Internet Computer (ICP)
ICP serves as the native cryptocurrency for the Internet Computer. Omnity explained that its cross-chain integration utilizes ICP’s “Chain Fusion Technology,” which enables the network to interact with and make changes to the Bitcoin blockchain.
Omnity stated in a press release, “ICP’s on-chain Bitcoin integration is crucial as it brings smart contract functionality to Bitcoin without the need to trust wrapped BTC from centralized bridging services. This opens up new possibilities for DeFi and Dapp development without congesting the Bitcoin network or driving up transaction fees.”
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