Taproot Asset, Bringing Stablecoins Back to the Bitcoin Network | Crypto Daily Digest Oct.19
Lightning Network has released the Taproot Assets mainnet alpha version, which means that stablecoins and other assets can now be built on the Bitcoin network. These assets are fully decentralized and are based on Bitcoin's Script scripting language, ultimately landing applications through the Lightning Network.
Bitcoin Script is a simple programming language used to define transactions. It allows for various conditions and operations to ensure transaction validity on the Bitcoin network. Bitcoin Script is typically used to create multi-signature transactions, time-locked transactions, and other advanced transaction types, enhancing Bitcoin's security and flexibility.
Does this mean that various assets can be issued on the Lightning Network, and various financial applications can be built, just like on Ethereum? Cryptoc analyst @Haotian on Twitter doesn't think so:
The systemic engineering of Taproot Assets is relatively intricate, and implementing a complete project isn't straightforward due to factors such as its multi-signature system, issuance and transfer logic, and the management and operation of point-to-multi-ledger accounting on the Lightning Network, all of which entail their own costs and barriers.
However, the Lightning Network naturally lends itself to high-frequency use cases, making stablecoins like USDT and USDC the best candidates for issuing as Taproot Assets.
We should soon witness stablecoins like USDT once again exploring the Bitcoin network and becoming the primary currency within Lightning Network application scenarios.
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