Lightning Labs wants to fix BRC-20 issues with Taproot Assets

On May 16, Lightning Network criticized the method used to list assets on the Bitcoin blockchain. The organization found them “particularly inefficient”. She questioned the cumbersome protocols that write asset metadata “directly in block space”. A protocol update should resolve this issue. It was even renamed “Taproot Assets”.

Cointelegraph announcing on Twitter that Lightning Labs has released an updated version of the Taproot Assets protocol.

What is the role of the new Taproot Assets protocol?

The name of this Taproot Assets protocol had to be changed, as it Lightning Labs was hit with a trademark infringement lawsuit with the name Taro. Indeed, it was set up to operate “as much as possible off-chain”. According to comments relayed by Cointelegraph, it should avoid network congestion. On March 8, an anonymous developer by the name of Domo created the BRC-20 token standard on Bitcoin. Since that date, the network is experiencing terrible congestion. So, Taproot Assets should solve this problem.

According to statements from Lightning Labs, users of the new version of the protocol could soon integrate BRC-20 assets into the Lightning Network, with ported wallets, exchanges and merchants, instead of needing to “get started”. a new ecosystem” from scratch.

A breath of fresh air for network users

Domo was one of the first to recognize that the Taproot Assets protocol is a much “better solution” than the method that was used before to create new assets on Bitcoin. As a reminder, one of these methods was to use JavaScript Object Notation (JSON). Now Taproot Assets will easily allow users to easily transfer to the Lightning Network.

The overwhelming majority of BRC-20 tokens created so far use ordinal registrations of JSON data to deploy token contracts, create tokens, and transfer them. Thus, Domo is not the only one to find this method ineffective since other developers have criticized it. Furthermore, they were not happy with the fact that the process costs four times more expensive in transaction fees compared to just using binary.

In sum, the total value of BRC-20 tokens exceeded $1 billion on May 9. But it has since relapsed to $500 million.. Isn’t this token and the clutter created on the network a sign that Bitcoin needs to evolve?

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