Lightning Labs CEO Elizabeth Stark believes that Taproot Assets can bring about a “Bitcoin Renaissance” and establish Bitcoin as the internet of money. Taproot Assets v0.3 has been released on mainnet alpha, allowing for the issuance of stablecoins and other assets on the Bitcoin network. While Lightning support is not currently available, it is expected to be added soon. The goal is to create a scalable multi-asset network without compromising the core principles of Bitcoin. The release has already seen significant developer activity, with over 18,000 distinct assets minted on the mainnet. The Lightning Network operates as a network of payment channels on top of Bitcoin, enabling fast and cost-effective micropayments.
Stablecoins are gaining popularity due to their digital nature, potential for self-custody, and relative price stability compared to inflation-hit local currencies. The rise of stablecoins has led to a demand for them on the Bitcoin network, which Taproot Assets aims to fulfill by integrating with the Lightning Network for instant settlement and low fees. Lightning Labs has received feedback from users and builders expressing interest in stablecoins on the Bitcoin infrastructure. The team is focused on financial assets and stablecoins due to demand from users in emerging markets and increasing demand for USD machine-to-machine payments.
The release of Taproot Assets v0.3 opens up various use cases, including lightning-fast foreign exchange transactions settled over the Lightning Network using existing bitcoin liquidity. Developers have also been experimenting with real-world assets like gold and U.S. Treasuries using the Taproot Assets protocol. With this release, developers now have tools to issue, manage, and explore mainnet assets on-chain. The development required improvements in security, scalability, and developer experience.
The ultimate goal is to transform Lightning into a multi-asset network, allowing users to send and receive different currencies over the Lightning Network using bitcoin as a global routing currency and medium of exchange. The team is now focused on achieving this goal. Prior to the mainnet launch, nearly 2,000 assets were minted on the testnet, and various projects are currently building out Taproot Assets infrastructure.
In September 2022, Lightning Labs released the initial Taro protocol code with the aim of “bitcoinizing the dollar.” However, the name was changed to Taproot Assets after a temporary restraining order was issued against Lightning Labs by blockchain startup Tari Labs. In July, Lightning Labs also released a suite of tools for AI development.
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