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In the 2003 series, we see on different occasions that the red stones are used
as an unstable alternative to the philosopher's stone despite the fact that
they do not have any souls entrapped in them. They're just artificially
synthesised.

If so, why was prophet Cornello able to apparently bypass equivalent exchange
using the red stones? More controversial is the revival of birds by alchemy
using a red stone. Why are homunculi fed with red stones as a source of souls?
It all just doesn't add up.


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fullmetal-alchemist-series fullmetal-alchemist-2003
How is the use of the red stones able to bypass equivalent exchange?


The [Red Stones](http://fma.wikia.com/wiki/Red_Stone) are created by
solidifying what is known as Red Water. Red Water is comprised of a collection
of other chemicals that can then be used in one's alchemy.

So, in essence, the users of Red Stones are not bypassing the law of
equivalent exchange, they are merely incorporating the chemicals that comprise
the stone into their alchemy as additional materials.


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In this story line, a Red Stone does indeed have the power to bypass the
natural laws of alchemy such as[1](http://fma.wikia.com/wiki/Red_Stone):

  * The requirement for transmutation circles
  * The Law of Equivalent Exchange
  * The required alchemical knowledge to perform alchemy

The goal of alchemists was to find a way around the known laws of alchemy,
which is why they had the goal of creating the Philosopher's Stone in the
first place. Red Stones are a result of their efforts at such research and
thus have similar capabilities as a true Philosopher's Stone. However, while
they do not require human sacrifice, they are not as powerful and can cause
adverse effects to the user in the form of rebound. An example of these
rebounds is the effect on Cornello's arm when the Red Stone crumbled.

[![Picture from Episode 2 2003: Alchemical
rebound](https://i.stack.imgur.com/GlY0M.jpg)](https://i.stack.imgur.com/GlY0M.jpg)

As far as your question about the birds, there has been a [similar
question](https://anime.stackexchange.com/q/5480/17758) already asked here on
stack exchange.

It's important to note that the information I've provided is only relevant to
the 2003 production. In the original manga, Red Stone is simply another name
for a Philosopher's Stone, and the stone Cornello used crumbled because it had
run out of souls. Ed believed it to be a fake because he was still under the
impression that the Philosopher's Stone was a source of unlimited
power[1](http://fma.wikia.com/wiki/Cornello).


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