In Brief: Introducing Alkanes, a New Bitcoin Metaprotocol
Alkanes is a new metaprotocol on Bitcoin enabling the launch of native smart contracts and tokens without bridges, expanding Bitcoin’s functionality.
What is Alkanes?
Developed by Oyl Corp, the Alkanes protocol allows developers to inscribe smart contracts directly into Bitcoin’s data layer using WebAssembly (WASM) virtual machines. This provides a trustless mechanism for executing state changes on the Bitcoin base layer, enabling features like automated market makers (AMMs), staking contracts, and NFT swaps directly on Bitcoin.
Based on a framework by Alec Taggart, Cole Jorissen, and Ray Pulver, Alkanes executes actions via an indexing framework tied to Bitcoin’s block finality, leveraging Bitcoin’s witness data and OP_RETURN fields. It complements projects like Ordinals, BRC-20 (Bitcoin NFTs), and Runes (fungible tokens).
Key features include the use of “protostones,” a data primitive enabling complex actions beyond simple token issuance/minting, treating all assets (fungible and non-fungible) as both tokens and contracts, and a factory deployment model to save resources. Non-fungible tokens are referred to as “Orbitals.”
Taggart emphasizes Alkanes provides a native system for Bitcoin, proving it can evolve beyond simple token standards to support advanced programmability.
How Alkanes Works
Alkanes uses protostones, akin to runestones in the Runes protocol, to include multiple messages enabling complex actions encoded and executed via WASM. These actions allow users to create, swap, and burn assets beyond simple token transfers.
All assets are treated as tokens under a factory deployment model, reducing on-chain overhead. Token names are not globally unique, unlike some standards, preventing name squatting. The first deployed token was “Diesel,” whose minting is tied to Bitcoin’s block reward and halving cycle.
Alkanes aims to coexist with and enhance the capabilities stemming from projects like Ordinals. While protocols can interoperate, Alkanes positions itself as a neutral platform for Bitcoin innovation.
Protocol Development and Future
Oyl Corp is actively developing components including a native AMM, ecosystem partnerships for stablecoins, block explorers, wallet libraries, and DeFi protocols (“full-stack apps” using Bitcoin primitives). The indexing infrastructure is released open-source.
Implemented at block 880,000 in early 2025, Alkanes officially launched in March of that year. Since then, it has grown organically through developer experimentation.
Oyl Corp aims for Alkanes to create a platform where composability, liquidity, and sovereignty can fully converge on Bitcoin.
