Omnity, the first 100% on-chain, omnichain interoperability protocol built on the Internet Computer (ICP), has announced its integration of Runes, an efficient UTXO-based Bitcoin metaprotocol that allows for the trade of fungible tokens on Bitcoin.

This integration aims to enable the trading of Rune tokens without gas or transaction fees. It also paves the way for greater Runes utility, including use within DeFi, marketplace integration, and token swaps without having to rely on risky cross-chain bridges. 

More About Omnity?

Omnity is the first 100% on-chain omnichain interoperability protocol, built on ICP, and operates without the need for any off-chain daemons such as relayers or indexers. It stands out for its remarkable speed and cost-efficiency, establishing itself as one of the most ideal cross-chain infrastructures for the modular blockchain world.

Omnity, ICP, and Runes

Omnity is the first protocol to support Runes interoperability. By integrating Runes and offloading the burden of native Bitcoin transactions onto ICP, Omnity alleviates network congestion, supporting the Bitcoin network’s evolution toward serving broader economic functions globally, which is especially crucial given the network’s increased activity from ETF inflows, Ordinals inscriptions, BRC-20 tokens, and now Runes, which upon launch at halving brought an unprecedented spike in fees. 

At launch, Omnity enables essential functionalities for Runes tokens, including their transfer across chains. This is achieved through the introduction of a “twin” token, which guarantees the preservation of Rune assets' integrity and functionality across diverse chains. Adhering to ICRC-2 standards, these tokens retain consistent symbols both on ICP and the Bitcoin network.

Chain Fusion Technology

Omnity's cross-chain integration is made possible through ICP's Chain Fusion Technology, which enables 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.

Runes is a token standard that operates natively with Bitcoin and eliminates the “junk” UTXOs of previous standards like BRC-20. Its design efficiency positions it to serve the Bitcoin network in a role analogous to Ethereum’s ERC-20 tokens. 

Despite the hype around Runes, they're notoriously hard to mint. Users face paying a high transaction fee to secure this new asset, and if they miss the window to mint, they risk losing their fees altogether.

Motoko Sentinels, a new NFT project on the Internet Computer, was recently launched on the Bitcoin network and now allows holders to mine Runes automatically. When combined with Onmity's interoperability protocol, this tech pairing enables the effortless minting of runes without the burden of high fees and facilitates seamless transfer across ecosystems.

Future Roadmap

Future updates to ICP will enable the direct creation of Runes and orchestration of other core Bitcoin functions from the Internet Computer using advanced cryptography known as threshold-Schnorr, which will bring a host of Bitcoin DeFi use cases without creating additional strain on the Bitcoin network. Runes created this way will be easily transferable using Omnity's integration.

Omnity only incorporates a settlement chain when full-node security can be achieved. For now, Bitcoin, Ethereum, and ICP itself meet this standard. However, almost all blockchains, including various types of Layer-2 networks (L2), can be connected with Omnity as execution chains. Meanwhile, any token issued on a connected settlement chain will have unparalleled cross-chain interoperability through Omnity without liquidity provisions.

“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. “This enhances Runes transaction efficiency and also cuts costs, which supports the scalability and economic functions of Bitcoin and ensures that users can access these assets free of any control from institutions or countries.”

Omnity's roadmap anticipates the launch of additional Bitcoin and Ethereum token standards, and integration with L2s, appchains, and other settlement chains.

More About The Internet Computer?

The Internet Computer is the world’s most powerful general-purpose blockchain and web platform. Its protocols apply advanced cryptography and computer science to scale smart contract data storage and computation without limit, host web-speed smart contracts that can directly serve web experiences to end users without the cloud, and run smart contracts with breakthrough levels of efficiency.

For the first time, developers can create truly decentralized dapps and services that run entirely from the blockchain, push into emerging areas such as SocialFi and GameFi, which blend social media and game functionality with DeFi, and build out the fully decentralized metaverse.

The Internet Computer blockchain acts as a complete alternative technology stack, which has been designed to replace the centralized IT stack that is mostly controlled by Big Tech, and it can even be used to build secure and unstoppable websites and enterprise systems. It was incubated and launched by the DFINITY Foundation.