Developers at Lightning Labs are moving toward bitcoinization with their new Taro protocol, which allows tokens to be issued on the world's most robust blockchain network.
Lightning Labs has launched the testnet for Taro, a blockchain protocol powered by Taproot that allows developers to create tokens that can be sent and received on the Bitcoin blockchain and, in the future, the Lightning Network.
This protocol was first announced in April of this year with the aim of offering developers and Bitcoin users the possibility of using stablecoins that can be transferred within this network, in order to carry out instant and low-cost transactions.
Taro will make Bitcoin a multi-asset network
Taro is a protocol that leverages the best of both Bitcoin and the Lightning Network. This protocol combines the security and stability that the Bitcoin network has always been known for with the speed, scalability, and low fees that come with the Layer 2 Lightning Network. All of this, according to Lightning Labs business development director Ryan Gentry, marks a big shift for the Lightning Network and the Bitcoin mainnet.
Through Taro, Bitcoin can become a multi-asset network with the potential for the world's currencies to be channeled through its liquidity, Gentry said.
Lightning Labs product manager Michael Levin said in a publication recently announced that the initial test version of Taro will allow developers to familiarize themselves with the code and build upon it, while Lightning Labs collaborates with the crypto community to prepare new features and functions that will improve this protocol and drive the global bitcoinization of the economy.
The goal of Lightning Labs developers is to engage the crypto community to publicly build Taro’s code, so they hope to receive feedback during the initial test version of the protocol.
Issuance of stablecoins in Bitcoin
Bitcoin is the most decentralized and secure blockchain in the world and with Taro, it can become a much more complete and robust network.
Levin explained that the bitcoinization of the dollar and the global financial system through Taro will be possible by issuing assets, such as stablecoins, on the Bitcoin network and that they will be able to move through instant and low-cost transactions using the second layer of the Lightning Network, the most efficient global Bitcoin-based payment network.
Taro's development is based on meeting the needs of users, who have been requesting the possibility of moving assets and making instant transactions with other currencies as they currently do with bitcoin (BTC) through the Lightning Network.
However, other Bitcoin-based protocols, such as Omni Layer, already allowed tokens to be issued on the Bitcoin blockchain. Omni Layer, the evolution of the well-known Mastercoin, It was used in 2014 to issue the Realcoin currency, the first version of Tether, on the Bitcoin blockchain.
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