{"id":325737,"date":"2023-05-17T10:15:30","date_gmt":"2023-05-17T09:15:30","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=325737"},"modified":"2023-08-04T15:22:05","modified_gmt":"2023-08-04T14:22:05","slug":"lightning-labs-teases-new-taproot-protocol-for-bitcoin-based-assets","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/lightning-labs-teases-new-taproot-protocol-for-bitcoin-based-assets\/","title":{"rendered":"Lightning Labs teases new Taproot protocol for Bitcoin-based assets"},"content":{"rendered":"<p>Lightning Labs announced that the latest version of the Bitcoin Taproot Assets protocol is currently in the testnet phase \u2014 enabling multi-asset support via the Lightning Network.<\/p>\n<p>The company said the protocol had been a year in the making, initially launching under <a href=\"https:\/\/lightning.engineering\/posts\/2023-05-16-taproot-assets-v0.2\/\">Taro<\/a>. A firm date for mainnet release was not given, only that the final product will be &#8220;coming soon.&#8221;<\/p>\n<h2>The Taproot Assets protocol<\/h2>\n<p>A <a href=\"https:\/\/docs.lightning.engineering\/the-lightning-network\/taproot-assets\/\">Taproot Assets guide<\/a> further detailed information on the protocol \u2014 which intends to foster greater Bitcoin use by adding quick, cheap, and scalable asset issuance capabilities to the network.<\/p>\n<blockquote><p><span data-slate-fragment=\"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\">&#8220;Taproot Assets (formerly Taro) is a new Taproot-powered protocol for issuing assets on the bitcoin blockchain that can be transferred over the Lightning Network for instant, high volume, low fee transactions.&#8221;<\/span><\/p><\/blockquote>\n<p>As indicated by the name, Taproot Assets utilizes improvements to the Bitcoin protocol that came with the <a href=\"https:\/\/cryptoslate.com\/data-on-taproot-ordinals-points-to-higher-bitcoin-fees-chain-bloat\/\">November 2021<\/a> Taproot soft fork.<\/p>\n<p>In brief, developers can <span data-slate-fragment=\"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\">embed arbitrary asset metadata<\/span> directly within the block space via each satoshi \u2014 the same technique employed by the Ordinals protocol for Bitcoin non-fungibles and BRC-20 tokens.<\/p>\n<p>However, unlike Ordinals, Taproot Assets works with the layer 2 Lightning Network to offer improved privacy and scalability. In other words, asset minting occurs on the mainchain, but owners have the option to move assets off-chain.<\/p>\n<blockquote><p><span data-slate-fragment=\"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\">&#8220;Assets issued on Taproot Assets can be deposited into Lightning Network channels, where nodes can offer atomic conversions from Bitcoin to Taproot Assets.&#8221;<\/span><\/p><\/blockquote>\n<p>Developers were invited to download the Taproot Assets v0.2 daemon, with Lightning Labs encouraging a thorough test of its features.<\/p>\n<h2>Bitcoin Ordinals controversy<\/h2>\n<p>The Ordinals protocol has sown division among the Bitcoin community.<\/p>\n<p>Advocates \u2014 including MicroStrategy Chair <a href=\"https:\/\/twitter.com\/WClementeIII\/status\/1656055385512452096\">Michael Saylor<\/a> \u2014 argue that it is a catalyst for adoption that will usher in a new era of application development on the chain. In contrast, critics highlight concerns over escalating fees, network congestion, and the lack of useful BRC-20 tokens.<\/p>\n<p>However, with Taproot Assets leveraging layer 2 technology, thus addressing high fees and network congestion, could this be a turning point for critics who wish to keep Bitcoin purely as a monetary network?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lightning Labs announced that the latest version of the Bitcoin Taproot Assets protocol is currently in the testnet phase \u2014 enabling multi-asset support via the Lightning Network. The company said the protocol had been a year in the making, initially launching under Taro. A firm date for mainnet release was not given, only that the [&hellip;]<\/p>\n","protected":false},"author":460,"featured_media":325756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78564,78756,37],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lightning Labs teases new Taproot protocol for Bitcoin-based assets<\/title>\n<meta name=\"description\" content=\"The Taproot Assets protocol leverages layer 2 technology to bring low cost, scalable asset support to Bitcoin.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/lightning-labs-teases-new-taproot-protocol-for-bitcoin-based-assets\/\" \/>\n<meta property=\"og:locale\" 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