Omnity protocol is launching a new integration for the trading of Runes tokens without ‘risky cross-chain bridges” or any gas or transaction fees.
In an announcement, Omnity said its interoperability protocol is built on the Internet Computer (ICP). This is integrated with Runes, an Unspent Transaction Output (UTXO) Bitcoin metaprotocol that allows for the trade of fungible tokens on Bitcoin.
Bitcoin Halving Brought an Unprecedented Spike in Fees
Since the Bitcoin halving it is estimated Runes have contributed to up to 68% of Bitcoin transactions, however, the fees earned by Bitcoin miners have started to dwindle.
Like BRC-20s, Runes is a protocol that uses the Bitcoin network. It pays fees in Bitcoin to generate new tokens. Runes uses the UTXO model to “etch” new tokens on Bitcoin. This contrasts with Ordinals’ “inscription” account model, according to a protocol explainer from Rodarmor.
Omnity Protocol said this integration aims to allow the trading of Rune tokens without gas or transaction fees. It allows for token swaps without having to rely on risky cross-chain bridges. Omnity claims to be the first protocol to support Runes interoperability. The protocol integrates Runes and offloads the burden of native Bitcoin transactions onto ICP.
Since its launch on April 20th, Runes has processed more than 2.38 million transactions, according to a Dune Analytics dashboard shared by blockchain research firm Crypto Koryo.
“As champions of blockchain’s mission to protect public goods, we’re proud to leverage the Internet Computer to alleviate congestion on the Bitcoin network,” said Louis Liu, founder of Omnity, in a press release.
“This enhances Runes transaction efficiency and also cuts costs, which supports the scalability and economic functions of Bitcoin,” said Liu.
Understanding Internet Computer (ICP)
ICP is the native cryptocurrency for Internet Computer. Omnity said its cross-chain integration uses ICP’s “Chain Fusion Technology” which allows the network to read and write to Bitcoin.
“ICP’s on-chain Bitcoin integration is essential because it brings smart contract functionality to Bitcoin without having to trust wrapped BTC from centralized bridging services, opening up new possibilities for DeFi and Dapp development without congesting the Bitcoin network and driving up transaction fees,” said Omnity in a press release.