Lightning Labs, a company that develops infrastructure for the Lightning Network, has announced the launch of Taproot Assets, a new way to create and use tokens on top of Bitcoin.
Taproot Assets Could Offer Cheaper, More Efficient Version of BRC-20 Tokens
Lightning Labs, a company that develops infrastructure for the Lightning Network, has announced the launch of Taproot Assets, a new way to create and use tokens on top of Bitcoin. Taproot Assets is a rebranding of the Taro project, which was first revealed in 2022.
Taproot Assets allows users to issue and transfer tokens on the Lightning Network, a layer-2 scaling solution that enables fast and cheap transactions on Bitcoin. Unlike BRC-20 tokens, which have caused congestion and high fees on the network, Taproot Assets is focused on asset issuance on top of Bitcoin in a cheap and efficient manner.
Taproot is a major improvement to Bitcoin's privacy and scalability, as it allows users to hide complex scripts inside simple public keys. Taproot Assets uses this feature to create tokens that look like regular Bitcoin transactions.
Taproot Assets can be used for various purposes, such as loyalty points, stablecoins, non-fungible tokens (NFTs), gaming items, and more. Notably, the creator of the BRC-20 standard has referred to Taproot Assets as an “unequivocally” better solution.
