Lightning Labs has released the mainnet alpha of its Taproot Assets daemon, advancing the project that seeks to enable stablecoins and other token assets on the Bitcoin blockchain. The software provides developers with tools to begin issuing and managing assets on Bitcoin and integrating them with the layer-two (L2) network.
Lightning Labs Wants to ‘Bitcoinize the Dollar’
Although Taproot took some time to gain momentum, its use cases have continued to grow since the integration of Bitcoin-based Ordinal inscriptions and its November 2021 implementation with Bitcoin. The Lightning Labs team has utilized Taproot to develop token assets transferable via Lightning Network payment channels.
Taproot is a Bitcoin protocol upgrade that introduced Schnorr signatures and a new scripting language, Tapscript. These advancements allow for the creation of intricate smart contracts and digital assets on Bitcoin, while also preserving user privacy. The Taproot Assets daemon utilizes Taproot technology to facilitate the issuance of stablecoins and other assets on Bitcoin.
Ordinal inscriptions and BRC20 tokens also employ Taproot for asset creation on Bitcoin. With the mainnet alpha launch, the Taproot Assets protocol will feature full functionality for onchain issuance, redemption, and transfer of BTC-based assets. Developers have the capability to mint new assets, destroy assets they have in custody, and develop apps for end users to send and receive assets using Bitcoin’s blockchain.
Lightning Labs notes that so far, the community’s response to the project has been substantial, with almost 2,000 testnet Taproot assets issued and more than 420,000 test syncs. The team invites stablecoin projects and token developers to contribute to the new release as the protocol nears a production-ready phase.
“With stablecoins integrated into Lightning wallets, users will be able to stack sats with minimal friction as their circumstances allow for it, bringing bitcoin to billions,” Lightning Labs details.
Another prominent feature of this release is the Multiverse mode, which allows one server to host “universes” for several assets simultaneously. Universes are data repositories containing all information necessary for wallets to initiate and synchronize a particular asset. The Multiverse feature will enable developers to construct familiar blockchain explorers for their assets.
The forthcoming major milestone is to allow these assets to be transacted via Bitcoin’s L2 system. When payment channel support is incorporated, global users will have the capability to instantly send and receive stablecoins and other tokens with negligible fees by leveraging Bitcoin’s liquidity and extensive network of nodes.
Following the announcement, several individuals shared their thoughts on Lightning Labs’ release. Bitcoin enthusiast Dan Held commented on X, calling it “huge” and added, “Let the Bitcoin defi flowers bloom.” Another individual expressed reservations about fiat stablecoins, suggesting a gold-pegged stablecoin instead.
Some believe RGB would be a more appropriate technology for stablecoins. RGB is also a platform that facilitates smart contracts and offers a system where users can mint and issue assets on the Bitcoin blockchain with Lightning Network compatibility.
An X account named Hunter Beast remarked to Lightning Labs, “Good for you. Meanwhile, RGB has been on mainnet for months, works with cold wallets instead of being on hackable hot nodes, can do smart contracts, not just assets, and you have no plans to scale beyond Lightning. Taproot Assets will always remain a poor imitator of RGB.”
What do you think about Lightning Labs’ Taproot Assets protocol? Share your thoughts and opinions about this subject in the comments section below.
by Jamie Redman via Bitcoin News
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