Will Runes Protocol Save Mining Companies From Collapse After Halving?

The recent Bitcoin halving once again illustrates the rapidly changing nature of the rules of the game in the world of digital currencies. During each halving, the reward given to miners is halved for each block mined. But the effect of triggering the Protocol Runes temporarily disrupted the effect of the halving.

Bitcoin Halving Hits Miners Hard, But Runes Protocol Offers a Lifeline

In principle, the Bitcoin halving, which occurs every four years, is supposed to halve the reward miners receive for each block mined (from 6.25 to 3.125). While this would normally reduce miners' profits and perhaps even slow down their activity, it has been shown so far to have less impact.

However, contrary to expectations, the simultaneous launch of the Runes Protocol by Casey Rodarmor on the blockchain led to Bitcoin Miner revenues rebounded unexpectedly thanks to a significant increase in transaction fees.

Thus, fees on the Bitcoin network reached a record level this weekend with the arrival of Runes, a new protocol launched by the creator of Ordinals which aims to bring fungible tokens to the market-leading blockchain.

Unlike Ordinals, Runes does not focus on non-fungible tokens like NFTs, but on fungible tokens. Runes wants to offer a more effective alternative to the BRC-20 formula, itself based on its own Ordinals protocol.

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The launch of the Rune protocol by Casey Rodarmour coincided with the Bitcoin halving, creating a perfect storm of activity. The demand for creating new codes based on runes has led to unprecedented congestion of the Bitcoin network. And you know Wikipedia Runes are a set of alphabetical letters that were used to write various Germanic languages ​​before the adoption of the Latin alphabet.

And in comment Speaking at the launch of the new protocol, Rodarmour said the runes and ordinal inscriptions were a “fun spectacle” and that Bitcoin was “the main event.” He added:

"Sometimes people think I'm Satoshi, and I hope that with the release of the runes, this rumor can finally stop, because Satoshi would never do something stupid like that."

Runes Protocol Momentum Temporarily Doubled Miner Revenues, and Bitcoin Network Needs Permanent Scalability Solutions

The growing demand for the creation of new tokens has led to massive congestion on the Bitcoin network, pushing transaction costs to new levels. Average transaction fees on halving day reached $127.97, significantly exceeding expectations. Helping to achieve the highest ever daily revenue for miners, reaching $107.8 million.

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This chaos has highlighted the urgent need to develop solutions to increase the scalability of Bitcoin, such as the Lightning Network. Which aims to facilitate small and fast transactions without the need to use the main blockchain. Although Runes Protocol congestion temporarily increased miners' revenue, it did not provide them with a lasting solution. Helpful Summary: Although this frenzy temporarily lined the miners' pockets, it only delayed the inevitable.

Just hours after the momentum generated by the halving and the launch of the Rune Protocol, Transaction fees have decreased Significantly. High average transaction costs decreased to around $8.48 and $9.32. We are far from the peaks which exceeded 146 and 170 dollars.