Casey Rodarmor, the creator of the controversial Ordinals and Runes protocols, has demonstrated the true permissionless nature of Bitcoin. Despite mixed reactions from the Bitcoin community, Rodarmor remains steadfast in his belief that Bitcoin’s primary value lies in its resistance to censorship and governmental control.
The Essence of Permissionless Innovation
Rodarmor’s principles emphasize that Bitcoin and its applications must remain secure. Speaking at Consensus 2024 in Austin, Texas, he highlighted Bitcoin’s role as hard money that individuals can freely adopt for various transactions. “The only thing that’s interesting about any sort of blockchain is the extent to which it can resist the government,” Rodarmor stated.
Ordinals and Runes, while controversial, are proof that it is possible to build resilient protocols on Bitcoin. These innovations have ushered in what some call “Bitcoin Season Two,” showcasing Bitcoin’s flexibility in supporting diverse applications.
The Value of Runes and Ordinals
Launched on April 19, 2024, Runes coincided with the Bitcoin halving event. This protocol allows for the creation of tradable assets on Bitcoin, similar to Ethereum tokens. Despite acknowledging that Runes is less important than Bitcoin itself, Rodarmor sees value in providing niche, engaging opportunities for crypto traders. These protocols have contributed to Bitcoin’s fee economy, with the halving event marking the highest transaction fees ever paid for a Bitcoin block at over $2.4 million.
Rodarmor’s initiatives have increased transaction fees, bolstering Bitcoin’s fee economy. This is crucial for the network’s security, especially considering Bitcoin’s hard cap on total supply. He emphasized the importance of developing a sustainable fee economy sooner rather than later to ensure the network’s robustness.
The Governance Challenge
Bitcoin’s governance structure is inherently anarchic and decentralized, which Rodarmor views as both dysfunctional and optimal. This lack of formal governance has allowed protocols like Runes and Ordinals to thrive. Traditional governance structures might have stifled such innovations, as evidenced by the criticism from prominent Bitcoin figures like Luke Dashjr.
Rodarmor’s disdain for the Bitcoin Twitter/GitHub consensus process highlights the challenges of navigating Bitcoin’s governance. Despite the success of Ordinals and Runes, Rodarmor received no grants or funding, driven purely by enthusiasm.
A Preview of Bitcoin’s Future
Rodarmor believes that his work provides a glimpse into Bitcoin’s future, with high transaction fees playing a critical role in its destiny. The development of tools that attract “normal users” while contributing to the network’s security is essential for Bitcoin’s long-term viability.
Ultimately, Rodarmor’s contributions underscore the permissionless nature of Bitcoin. They highlight the potential for innovation within the network, despite resistance and controversy. His work exemplifies how Bitcoin can evolve while maintaining its core principles of security and resistance to censorship.
