Lightning Labs Debuts Taproot Assets: A Step Towards Multi-Asset Bitcoin Era
Summary:
Lightning Labs has launched the mainnet alpha of Taproot Assets, a protocol enabling the issuance of stablecoins and real-world assets on the Bitcoin and Lightning Network. The current version provides developers a comprehensive experience to manage and issue these assets on the Bitcoin blockchain. The introduction of Taproot Assets marks the beginning of a multi-asset Bitcoin era where global currencies could be issued as Taproot Assets, and foreign exchange transactions can be instantly settled over the Lightning Network.
Foray into the development of layer-2 Bitcoin infrastructure, Lightning Labs has introduced the mainnet alpha of Taproot Assets. This pioneering protocol aims to offer a platform for stablecoins and tangible assets to be introduced on Bitcoin and the Lightning Network. The current edition, Taproot Assets v0.3, is designed to offer a wholesome and comprehensive experience for developers - one where they can issue, explore, and manage other assets and stablecoins directly on the Bitcoin blockchain. The release was announced by Ryan Gentry, the Head of Business Development at Lightning Labs.
Gentry shared anticipations about the oncoming Bitcoin era, which he believes will see numerous currencies worldwide issued as Taproot Aseests, and foreign exchange transactions across the globe instantly settled over the Lightning Network. With this breakthrough, developers will now have the capability to present financial assets on-chain in a scalable way. This signifies a landmark day for Bitcoin, marking a transition to a new era of multi-asset Bitcoin.
The way Taproot Assets functions is by channeling through the existing Bitcoin liquidity on the Lightning Network. Gentry voiced that this incorporation brings Bitcoin a step closer to its network effects and towards 'bitcoinizing the dollar'. This is regarded as a significant step towards making Bitcoin a global routing network for the internet of money and 'bitcoinizing' the world's financial assets.
The enthusiasm of developers for stablecoin applications on Bitcoin has been highly noticeable, especially considering that the hold of some stablecoin distributors on United States Treasuries exceeds that of countries like Germany and South Korea. The mainnet alpha launch saw almost 2,000 Taproot Assets produced over several months in the testnets, prior to the launch. Alpha launches generally mean that the network has not yet reached its final state.
Lightning Labs clarified that the alpha tag is indicative of their expectation for the community to test it for prospective bugs. Other developments in the Bitcoin ecosystem looking to amplify Bitcoin's functions include Bitcoin Drivechains, Botanix Labs' Spiderchain, and BitVM.
Published At
10/19/2023 12:05:05 AM
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