If you follow the newest Bitcoin events, you may have seen the name “Alkanes” appear on your timeline via ordinals and runes -pleasers. But what is it?
Alkanes is a new meta protocol built on Bitcoin that introduces confidential smart contract functionality in the base layer, without trusting bridges or external implementation layers. It allows developers to build apps and start native tokens on Bitcoin, extending the functionality of the original blockchain.
The protocol has been developed by OYL Corp and is the result of two years of infrastructure research aimed at the programmability advanced on Bitcoin. Decrypt Speaked with co-founder of Alkanes and CEO Alec Taggart for more information about the origin, the goal of the project and what the next step is.
What is Alkanes?
Alkanes is a Bitcoin metaprotocol founded by Alec Taggart, Cole Jorissen and Ray Pulver. It is a framework that allows developers to register smart contracts directly in Bitcoin’s data layer with the help of WADM (WebAssembly) virtual machines.
Smart contracts that contain the code that drives decentralized applications are common on chains such as Ethereum and Solana. Bitcoin does not support native smart contracts, which has limited its Defi possibilities historically. But developers become cunning and the Alkanes protocol makes it possible to do more on Bitcoin.
This is our investor pitch pic.twitter.com/lka8goqztl
– Oyl | Alkanes Bouwen (@oylwallet) 28 May 2025
It is done in a compact, efficient format that uses Bitcoin’s witness data and the Op_Rreturn field to perform and follow state changes. It functions in the same way as ordinals (Bitcoin NFTs, more or less) and runs (fungible tokens), but adds support to wasm -based smart contracts. Implementation and transitions of the situation are handled via an indexation framework, with activity on chains bound to Bitcoin block finality.
Where the runen and BRC-20 standards are largely limited to publishing and transferring fungible tokens, Alkanen makes a rich programmability possible, including automated market makers (AMMs), stake contracts, free coins, NFT swaps and more. This is all reliably done on Bitcoin itself.
Instead of competing with ordinals or runes, the Alkanes protocol is intended to live next to them. Ordinals arose cultural momentum on Bitcoin; Alkanes gives it a motorcycle.
Alkanes mark the following evolution in Bitcoin metap protocol, switching from static token issue to dynamic application implementation. pic.twitter.com/nmlcjoht8f
– Messari (@messaricrypto) 6 June 2025
The protocols can work together – for example, if you have an ordinal, you can use it to have a new Alkanes activum in Mint. This makes Alkanes a neutral but expandable base layer for wider Bitcoin innovation and development. The protocol does not require a bridge or a separate version, so that developers have access to Bitcoin’s native data and at the same time engage extra use cases.
Oyl’s founders, veterans of the Defi stack of Ethereum, saw the potential of Bitcoin not only as a store of value, but as a settlement layer for fully expressive apps. The 2023 launch of ordinals led to cultural and economic activity on Bitcoin, but Taggart said that real composition has remained elusive so far.
“Alkanes is the result of years of hard research and conviction,” Taggart said. “It proves that Bitcoin Ethereum does not have to imitate to evolve. It is a native system built for those who believe that Bitcoin is sufficient.”
How it works
Alkanes introduces Protostones, a new data -principle related to Runestones in Runes. Each Protoston can contain multiple messages, making a series of actions possible than simple issue, creating, exchanging, mulping and burning, all encrypted and executed via a laundry runtime.
Each active on alkanes is treated as a token and a contract. The platform uses a factory model to enable efficient contract implementation. Instead of re -using contracts for each new active act, developers can easily pass on new parameters to a template. This leads to saving on blockspace and costs.
In Alkanes, all asset-frungi and non-fungeable treated as tokens are being treated. NFTs are called ‘orbitals’, a standard developed by the community that arose shortly after the protocol was launched. Alkanes Fungible tokens are comparable to ERC-20s on Ethereum, with full smart contract support and composability.
The first token that was used on Alkanes was diesel, which reflects Bitcoin’s emission schedule. It is beaten via Bitcoin blocks, using an oncode that keeps track of the block remuneration and connects the issue directly with the Haltecycle of Bitcoin.
Alkanes differs Van Runen and BRC-20s in the sense that Ticker names are not unique worldwide. Each token has a unique identification, so the same name (eg “methane”) can exist among multiple IDs, so that the type of squat is prevented in other standards.
97% of @alkanepandas became airdropt via 1 Sat Satxos after a greedy bone took over the free public currency of $ diesel style
But as soon as a panda is moved or traded, it will receive the typical 330 Sat Utxo filling
How many pandas will live on 1 Satxos forever?
🐼🥇 pic.twitter.com/1bnm8lytm
– Alkane Pandas (@alkanepandas) 24 June 2025
Popular NFT collections include Alkane Pandas, who have a strong and devoted community, and Oyly on Alkanes, the first free Mint collection on Alkanes.
What is the following?
The Alkanes team is building a native AMM for Alkanes, together with the setting up of ecosystem partners around Stablecoins (bound), Blok Explorers (Ordiscan, Unisat), Wallet Libraries (Lasereyes) and Defi protocols. With these components, developers can build full-stack apps with only Bitcoin-Primitives.
“These applications are intended to show how developers can build complete Dapps directly on Bitcoin using Alkanes infrastructure,” Taggart adds.
OYL CORP has also released its indexation engine, Metashrew and all related infrastructure as open-source software, allowing developers to inspect, fork or contribute to the growth of the protocol.
The Alkanes protocol was launched in early 2025 at Block 880000, marked by the use of the diesel contract. While the Mint community followed later at the beginning of March, it was hard code to initialize as soon as the protocol began to scan on messages from that block.
Since the launch, the project has grown organically through developer experiments and open-source contributions, while Bitcoin builders work to promote a sustainable ecosystem.
“The goal of Alkanes is not only to create another token standard, it is to give developers a platform where composability, liquidity and sovereignty can finally come together on Bitcoin,” Taggart said.
Published by Andrew Hayward