If you’ve been following the latest Bitcoin news, you may have seen the name “Alkanes” pop up on your timeline, thanks to a community of users who enjoy Ordinals and Runes.
Alkanes is a new meta-protocol built on top of Bitcoin that introduces trustless smart contract functionality to the underlying layer without relying on a bridge or external execution layer. This means that developers can build applications and launch tokens natively on Bitcoin, thus extending the functionality of the original blockchain.
Developed by Oyl Corp , the Alkanes protocol is the result of two years of infrastructure research by the team and aims to enable more advanced programmability directly on Bitcoin.
This article will discuss the origin, purpose and future development direction of the project .
What are Alkanes?
Alkanes is a Bitcoin meta-protocol founded by Alec Taggart, Cole Jorissen and Ray Pulver that provides a framework for developers to write smart contracts directly into Bitcoin's data layer using the WASM (WebAssembly) virtual machine.
Unlike chains that support smart contracts, such as Ethereum and Solana, Bitcoin does not natively have this function, which limits its development in the DeFi field. Alkanes is an innovative solution designed to make up for this shortcoming.
The Alkanes protocol uses a compact and efficient design, using Bitcoin's witness data and OP_RETURN fields to execute and track state changes. It operates similarly to Ordinals (Bitcoin NFTs) and Runes (homogeneous tokens), but further introduces support for WASM smart contracts. Execution and state transitions are handled through an index framework, and on-chain activities are bound to the finality of Bitcoin blocks.
Unlike BRC-20 and Runes, which are mainly limited to issuing and transferring homogeneous tokens, the Alkanes protocol does not require a bridge or additional execution layer, and developers can build more applications directly based on Bitcoin's native data to achieve more use cases. For example, Alkanes supports a rich set of programmable functions, including automated market makers (AMMs), pledge contracts, free minting, NFT exchanges, etc. All operations are completed on the Bitcoin chain without trust.
More importantly, Alkanes does not attempt to replace existing protocols, but rather interoperate with them. For example, a user can mint a new Alkanes asset with an Ordinal asset. This makes Alkanes a neutral and scalable base layer that drives broader Bitcoin innovation.
Oyl's founders, veterans of the Ethereum DeFi ecosystem, saw the potential of Bitcoin not just as a store of value, but also as a settlement layer that supports fully functional applications. The launch of the Ordinals protocol in 2023 has stimulated cultural and economic activity on Bitcoin, but Taggart said true composability has been elusive until now.
“Alkanes is the result of years of deep research and conviction,” Taggart said. “It proves that Bitcoin can evolve without having to imitate Ethereum. It’s a native system built for those who believe Bitcoin is enough on its own.”
How does it work?
Alkanes introduces protostones, a new basic unit of data, similar to runestones in Rune. Each protostone can contain multiple messages, allowing a range of actions such as creation, exchange, minting and burning beyond simple issuance, all of which are encoded and executed through the WASM runtime.
In Alkanes, all assets - whether fungible or non-fungible - are considered tokens. NFTs are called "Orbitals" . Alkanes' fungible tokens are similar to ERC-20 on Ethereum, with full smart contract support and composability.
The first token deployed on Alkanes is Diesel, which is minted from Bitcoin blocks, uses a directive that tracks block rewards and ties issuance directly to Bitcoin’s halving cycle. Diesel mirrors Bitcoin’s emission schedule.
Imagine DePIN project construction in Alkanes
The Alkanes team is building a native automated market maker (AMM) for Alkanes, while also establishing ecosystem partnerships in areas such as stablecoins (Bound), block explorers (Ordiscan, Unisat), wallet libraries (LaserEyes), and DeFi protocols. These components will enable developers to build full-stack applications using only the basic functions of Bitcoin.
“These applications are designed to demonstrate how developers can leverage Alkanes’ infrastructure to build complete decentralized applications (dapps) directly on Bitcoin,” Taggart added.
Oyl Corp has also released its indexing engine Metashrew and all related infrastructure as open source software, allowing developers to review, fork or contribute to the evolution of the protocol.
If the Decentralized Physical Infrastructure Network (DePIN) project is imagined to be built on Alkanes, the project is based on the native programmability, security and stability of Bitcoin, as well as the economic incentive model implemented by Alkanes-based AMM and stablecoins (such as Bound) , the interoperability of the protocol and the support of the Alkanes open source community, which will all be unique to the DePIN project.
Bitcoin-native programmability and smart contract support
Alkanes provides smart contract functionality on top of the Bitcoin data layer, which allows the DePIN project to directly leverage the security and stability of Bitcoin while enjoying the flexibility brought by smart contracts.
Compared to traditional solutions that rely on Ethereum or other chains, this means that the DePIN project can deploy and run complex decentralized applications (dApps) directly on Bitcoin without the need for cross-chain bridging.
In terms of security and privacy protection , the DePIN project can obtain higher security guarantees based on Bitcoin's strong security record. In addition, since Alkanes allows developers to write smart contracts using WASM, these contracts can provide a certain degree of privacy protection when executed, which is especially important for processing sensitive data (such as customer information in enterprise-level cloud computing services).
Highly customized economic model
DePIN projects leverage Alkanes’ AMM and stablecoins (such as Bound) to design more complex and adaptable economic incentive models for projects. For example, decentralized cloud computing projects can use custom AMMs to balance market dynamics between resource suppliers and demanders, ensuring the sustainability and scalability of the network.
Enhanced interoperability and composability
Alkanes supports interoperability with other protocols such as Ordinals and Runes, which provides the DePIN project with a broader user base and technology stack. For example, a decentralized cloud computing platform built on Alkanes can issue NFT-style computing resource usage rights through Ordinals, or pay for services in the form of homogeneous tokens through Runes.
in conclusion
The Alkanes protocol went live at block 880,000 in early 2025, marking the deployment of the Diesel contract. Although community minting activities only began in early March of the same year, the protocol was hard-coded to automatically initialize once it began scanning for messages after that block.
Since its launch, the project has achieved natural growth through developer experimentation and open source contributions, and Bitcoin ecosystem builders are committed to creating a sustainable ecosystem.
The DePIN project built on Alkanes can not only fully utilize the underlying advantages of Bitcoin such as privacy, security, and decentralization , but also create a secure and efficient decentralized cloud computing service with the advanced programmable features, rich economic tools, and powerful interoperability provided by Alkanes. This combination has opened up a path for exploring new business models and service forms, while promoting the prosperity and development of the entire Bitcoin ecosystem , it also provides a diversified development path for the DePIN project.
“The goal of Alkanes is not just to create another token standard, but to provide developers with a platform where composability, liquidity, and sovereignty can finally converge on Bitcoin,” Taggart said.
We expect this integration to happen gradually.
