Lightning Labs Launches New Name ‘Taro’ Amid Bitcoin’s BRC-20 Bottleneck

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Bitcoin (BTC) users have received a possibly more efficient way to create new assets on the blockchain after an updated edition of the recently renamed Taproot Assets protocol was released by Lightning Labs.

In a May 16 blog post, infrastructure firm Lightning Network Lighting Labs criticized current methods of listing assets on the Bitcoin blockchain as particularly efficient and pointed to cumbersome protocols that write asset metadata. directly in block space.

Today we are excited to announce the new version of Taproot Assets, a scalable protocol for issuing assets on #bitcoin and Lightning.

With this release, developers have the basic feature set to bitcoinize the dollar in an efficient on-chain fashion! https://t.co/7WmeDjNnM2

— Lightning Labs (@lightning) May 16, 2023

The Taproot Assets protocol is designed to operate maximally off-chain to avoid the network congestion that has become an unfortunate feature of the Bitcoin network since the creation of the BRC-20 token standard by 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, with wallets, exchanges and merchants transferred over instead of having to start a new ecosystem from scratch.

Domo has previously stated that the Taproot Assets protocol is a much better solution for creating new assets on Bitcoin compared to pre-existing methods such as JavaScript Object Notation (JSON), as it allows users to easily transfer to the Lightning Network for operations. fast and cheap operations.

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.

This method has drawn a lot of criticism from developers who claim that the process costs four times more in transaction fees than if they just used binary.

The Taproot Assets protocol is the renamed version of the original Taro protocol. Lightning Labs was forced to change the name of the software following what it called a frivolous trademark infringement lawsuit against them by blockchain development firm Tari Labs on December 8 last year.

Related: Ordinals and BRC-20 Will Disappear in 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, a drop of almost 50%.

The total number of BRC-20 tokens ranked by market cap. Source: BRC20.io.

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