Lightning Labs Releases “Taproot Assets” Protocol for Bitcoin
Lightning Labs, the company behind the development of Bitcoin’s lightning network, has launched the mainnet alpha of its “Taproot Assets” protocol. This protocol enables stablecoins and other tokens to trade on the Bitcoin network. Lightning Labs describes this release as the beginning of a new era for Bitcoin, transforming it into a global routing network for the internet of money. The company believes that Taproot Assets will lead to the issuance of various global currencies and instant settlement of foreign exchange transactions over the Lightning Network.
Taproot Assets and Taproot Upgrade
Taproot Assets, formerly known as “Taro,” utilizes Bitcoin’s Taproot upgrade from 2021. This upgrade improved smart contract capabilities, transaction privacy, and memory efficiency. Unlike other token standards like Ordinals and BRC-20, Taproot Assets prioritizes data efficiency, resulting in lower transaction fees and higher throughput. While the current release supports on-chain functionality, future updates will make it compatible with the lightning network.
The Importance of Bitcoin Assets
Developers increasingly see potential in moving existing currencies on the Bitcoin network rather than solely viewing BTC as a standalone currency. David Marcus, co-founder of PayPal and head of Lightspark, a lightning-focused company, believes that Bitcoin will become a universal protocol for money on the internet. This would allow fiat currencies like dollars, euros, and yen to be transferred using Bitcoin’s infrastructure. Tether USD (USD), currently the largest stablecoin by daily transaction volume at crypto exchanges, exemplifies the importance of assets on the Bitcoin network.
Hot Take: Lightning Labs Unleashes Taproot Assets Protocol for Global Token Trading on Bitcoin
Lightning Labs has released its highly anticipated Taproot Assets protocol, marking a significant milestone for Bitcoin. With this protocol, stablecoins and other tokens can now be traded on the Bitcoin network. This move is expected to usher in a new era for Bitcoin, transforming it into a global routing network for the internet of money. By leveraging the Taproot upgrade, Taproot Assets ensures data efficiency, lower transaction fees, and greater throughput. The release supports on-chain functionality initially and will later be compatible with the lightning network. This development highlights the growing importance of assets on the Bitcoin network and positions Bitcoin as a universal protocol for money on the internet.
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