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Bitcoin (BTC) users have been presented with a potentially more effective method for minting new assets on the blockchain following the release of an updated version of the recently rebranded Taproot Assets Protocol by Lightning Labs.
In a blog entry dated May 16, Lightning Network infrastructure company Lightning Labs criticized the existing techniques for inscribing assets on the Bitcoin blockchain, labeling them as “particularly inefficient” and highlighting the cumbersome protocols that embed asset metadata “directly into block space.”
Today we’re thrilled to unveil the latest version of Taproot Assets, a scalable protocol for issuing assets on #bitcoin and Lightning.
With this release, developers have the essential features to bitcoinize the dollar in a chain-efficient manner! ⛓️https://t.co/7WmeDjNnM2— Lightning Labs⚡️ (@lightning) May 16, 2023
The Taproot Assets Protocol is intended to function “maximally off-chain” to prevent the network congestion that has unfortunately characterized the Bitcoin network since the introduction of the BRC-20 token standard by the anonymous developer “Domo” on March 8.
Lightning Labs indicated that users of the Protocol will soon be able to incorporate BRC-20 assets into the Lightning Network, with wallets, exchanges, and merchants being transitioned rather than having to “bootstrap a new ecosystem” from the ground up.
Domo has previously stated that the Taproot Assets Protocol is a significantly “better solution” for minting new assets on Bitcoin compared to earlier methods such as JavaScript Object Notation (JSON), as it enables users to seamlessly transition to the Lightning network for “fast and inexpensive transactions.”
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The vast majority of BRC-20 tokens created to date employ Ordinal inscriptions of JSON data to establish token contracts, mint tokens, and facilitate transfers.
This approach has faced considerable criticism from developers who argue that the process incurs transaction fees that are four times higher than if binary were utilized.
The Taproot Assets Protocol is the rebranded iteration of the original “Taro” protocol. Lightning Labs was compelled to rename the software following what it described as a “frivolous” trademark infringement lawsuit filed against them by blockchain development firm Tari Labs on December 8 of the previous year.
Related: Ordinals and BRC-20 will vanish within months, asserts JAN3 CEO
The total value of BRC-20 tokens briefly exceeded the $1 billion threshold on May 9 but has since declined to $500 million, representing a nearly 50% decrease.
The total number of BRC-20 tokens ranked by market cap. Source: BRC20.io.
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