Lightning Labs, an institution dedicated to research and development related to the Lightning Network, Bitcoin’s second layer, has announced the rollout of Taproot Assets. This solution allows for issuing multiple tokens on top of it. The institution aims to capitalize on the popularity and volume of stablecoins to establish bitcoin as the global routing currency.
Lightning Labs Rolls out Taproot Assets Seeking to Bring Stablecoins to Lightning Network
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Lightning Labs Releases Taproot Assets, Aims to Onboard Stablecoin Traffic
The Lightning Network is evolving to offer more functionality for its potential users. Lightning Labs, developers of software directed to expand the Lightning Network (LN), Bitcoin’s scalability layer, has officially released Taproot Assets, a solution that allows for minting and distribution of different tokens using LN as rails.
With this move, Lightning Labs seeks to take advantage of Bitcoin’s security and liquidity, leveraging it to move other tokenized assets.
Ryan Gentry, Director of Business Development at Lightning Labs, stated that to reach this functionality, the early adopters had to iterate and mint over 170,000 assets on-chain, contributing to the development of wallets, exchanges, and explorers.
Gentry also clarified that each of these new multiple assets will not need to provide its liquidity channel, taking advantage of the 5,400 bitcoin allocated to the Lightning Network. Issuers of these assets will have the opportunity to open channels denominated in any currency of choice. These would also be able to interact with other channels, adding to the network’s liquidity.
Lightning Labs stated that onboarding stablecoins users and financial institutions using these, which move an important volume of the total cryptocurrency market, “is vitally important both for ensuring the security of their operations, and scaling usage of both bitcoin the asset and bitcoin the network to the world.”
Taproos Assets’ transactions would also enjoy the same benefits of bitcoin transactions on top of LN, including low fees and almost instant settlement times.
In May, Lightning Labs CEO Elizabeth Stark declared that stablecoins were coming to the Lightning Network, also hinting at the development of software directed to tokenizing institutional assets, such as gold or other backed instruments.
What do you think about the rise of Taproot Assets on the Lightning Network? Tell us in the comments section below.
Bitcoin.com News is seeking a News Writer to produce daily content on cryptocurrency, blockchain, and the digital currency ecosystem. If you are interested in becoming a key member of our innovative global team, apply here.
