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Bitcoin (BTC) users have been given a possibly more efficient way to create new assets on the blockchain after Lightning Labs released an updated version of the recently renamed Taproot Assets protocol.
In a May 16 blog post, Lightning Network infrastructure company Lighting Labs criticized the current methods by which assets fit into the Bitcoin blockchain, calling them “particularly efficient,” and pointed to cumbersome protocols that write asset metadata “directly into block space.”
Today we’re excited to announce the newest version of Taproot Assets , a scalable protocol 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 designed to operate “as much as possible off-chain” to avoid network congestion, which has become an annoying feature of the Bitcoin network since the introduction of the BRC-20 token standard by the anonymous developer “Domo” on March 8.
Lightning Labs said users of the protocol will soon be able to integrate BRC-20 assets into the Lightning Network, migrating wallets, exchanges, and merchants, instead of “starting a new ecosystem” from scratch.
The vast majority of BRC-20 tokens created to date use JSON ordinal data records to deploy token contracts, mint tokens, and transfer them.
This method has drawn widespread criticism from developers who claim that the process costs four times the transaction fees compared to if they used binary only.
The Taproot Assets protocol is an updated version of the original Taro protocol. Lightning Labs was forced to change the name of the software after Tari Labs filed a “baseless” trademark infringement lawsuit against them on December 8 last year.
RELATED: Ordinals and BRC-20 to disappear in a few months, says JAN3 CEO
The total value of BRC-20 tokens briefly surpassed the $1 billion mark on May 9, but has since fallen back to $500 million, or nearly 50%.