Lightning Labs launches rebranded ‘Taro’ amid Bitcoin’s BRC-20 bottleneck
Bitcoin (BTC) users have been provided a potentially more efficient method to mint brand-new possessions on the blockchain after an updated edition of the recently-rebranded Taproot Assets Protocol was released by Lightning Labs.In a May 16 blog post, Lightning Network facilities company Lighting Labs criticized the existing approaches by which assets are engraved on the Bitcoin blockchain, calling them “especially ineffective” and pointed to troublesome procedures that compose asset metadata “straight into block space.” Today were delighted to announce the newest variation of Taproot Assets, a scalable procedure to issue assets on #bitcoin and Lightning.With this release, developers have the core set of 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 developed to run “maximally off-chain” in order to prevent the network congestion that has ended up being a regrettable characteristic of the Bitcoin network given that the inception of the BRC-20 token standard by anonymous designer “Domo” on March 8. Lightning Labs said Protocol users could quickly integrate BRC-20 properties into the Lightning Network, with exchanges, wallets and merchants ported, over instead of needing to “bootstrap a brand-new ecosystem” from scratch.Domo has previously said the Taproot Assets Protocol is a far “better solution” for minting new possessions on Bitcoin when compared to the pre-existing methods like JavaScript Object Notation (JSON), as it permits users to easily transfer to the Lightning network for “low-cost and quick transactions.” The frustrating bulk of BRC-20 tokens created so far utilize Ordinal engravings of JSON data to deploy token contracts, mint tokens and transfer them.This approach has actually drawn prevalent criticism from developers, who declare the procedure costs four times as much in transaction fees compared to simply using binary.The Taproot Assets Protocol is the rebranded variation of the original “Taro” protocol. Lightning Labs was forced to alter the name of the software application following what it called a “pointless” hallmark infringement fit filed against them by blockchain development firm Tari Labs on Dec. 8 last year. Related: Ordinals and BRC-20 will disappear in a matter of months, says JAN3 CEOThe total worth of BRC-20 tokens briefly exceeded the $1 billion mark on May 9 however has since shrunk down to $500 million, a drop of almost 50%. The total variety of BRC-20 tokens ranked by market cap. Source: BRC-20Magazine: $3.4 B of Bitcoin in a popcorn tin– The Silk Road hackers story
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Other Questions People Ask
What is the significance of Lightning Labs launching the rebranded ‘Taro’ amid Bitcoin’s BRC-20 bottleneck?
The rebranding of Taro by Lightning Labs represents a significant advancement in the way assets can be minted on the Bitcoin blockchain. By addressing the inefficiencies associated with the BRC-20 token standard, Lightning Labs aims to provide developers with a more scalable and cost-effective solution. This updated Taproot Assets Protocol allows for better integration with the Lightning Network, enabling quicker and cheaper transactions for users.
How does the Taproot Assets Protocol improve upon existing methods for minting assets on Bitcoin?
The Taproot Assets Protocol enhances the minting process by allowing assets to be issued "maximally off-chain," which helps alleviate network congestion that has plagued Bitcoin since the introduction of BRC-20 tokens. Unlike previous methods that relied heavily on JSON data, this protocol offers a more efficient way to handle asset metadata. As a result, users can expect lower transaction fees and faster processing times when utilizing the Lightning Network.
What challenges did Lightning Labs face that led to the rebranding of Taro?
Lightning Labs was compelled to rebrand Taro due to a trademark infringement lawsuit filed by Tari Labs, which they described as "pointless." This legal challenge prompted the company to change the name of their protocol while continuing to focus on enhancing the functionality and efficiency of asset minting on Bitcoin. Despite this setback, Lightning Labs remains committed to providing innovative solutions for developers and users in the cryptocurrency space. This directly relates to Lightning Labs launches rebranded ‘Taro’ amid Bitcoin’s BRC-20 bottleneck in practical terms.
Why are BRC-20 tokens considered inefficient compared to the new Taproot Assets Protocol?
BRC-20 tokens have been criticized for their reliance on Ordinal engravings of JSON data, which can lead to significantly higher transaction fees—reportedly four times more than using binary methods. This inefficiency has raised concerns among developers about the sustainability of BRC-20 as a standard for asset minting. In contrast, the Taproot Assets Protocol offers a streamlined approach that minimizes costs and enhances transaction speed, making it a more attractive option for users.
What impact has the BRC-20 token market experienced recently, and how does it relate to Lightning Labs' new protocol?
The total value of BRC-20 tokens briefly surpassed $1 billion but has since dropped to around $500 million, indicating volatility in this market. This decline highlights the need for more efficient solutions like the Taproot Assets Protocol from Lightning Labs, which aims to address the shortcomings of BRC-20 tokens. By providing a more effective method for asset minting, Lightning Labs hopes to stabilize and enhance user confidence in Bitcoin-based assets.