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0 sats \ 1 reply \ @SwapMarket 2h \ on: Maybe Core is Captured? What is the difference between 'data' and 1s & 0s? bitcoin
Bitcoin is a peer-to-peer electronic cash system, per the whitepaper title. UTXO amounts are the coins of this cash system. Any other "tokens" or "data" are parasitic spam.
Tokens and shitcoins on Bitcoin don't exist. How could they? The only "cash" on the Bitcoin network is Bitcoin.
Hypothetically someone could "pretend" that an op_return output "ABC" is a new "token". And to "create" the token more op_returns need to appear with the words "mint" and "ABC" juxtaposed.
Degens show up and now there are thousands of transactions with that exact op_return - "mint ABC" flooding the network.
Were any tokens created? No. Were those 'tokens' stored on Bitcoin? No.
Where are those tokens? On some external database. Was this an innovation? No.
Now another set of degens show up and create a "new token" called the "DEF" token by including that symbol in op_returns next to the word "mint"...
"Mint DEF" appears by the thousands and thousands... after which an external database 'records' that the token was 'minted' by the thousands. Certain outputs are then traded to "speculate" on the value of that token... and sketchy Chinese exchanges "track" the movement of that token to "pretend" that people can trade dust outputs... and the degens show up flooding the network with dust/arbitrary transactions to pretend they are 'creating tokens'.
Was a "token" really added to Bitcoin? No.
Created on Bitcoin? No.
All the degens did was add arbitrary data and "pretend" they were creating something new...
As a matter of fact that's all that "runes" are. Arbitrary data.
And the consequnce? 10s of thousands of dust/spam-like transactions to simulate the 'movement of tokens' across the network even though there are no "tokens" on Bitcoin. The side effect is higher fees on the network, and also a growing UTXO set as degens pay the dust outputs.
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