A Protocol for Issuing Tokens Launches on Bitcoin’s Lightning Network
Many bitcoiners thought it would be a cold day in hell when BHB Network co-founder Giacomo Zucco admitted that all tokens aren’t inherently scams.
But, as it turns out, all he needed were the right partners.
What started as a client’s request for a more secure alternative to ethereum’s ERC-20 tokens will soon emerge as the first unique protocol for issuing tokens via bitcoin’s lightning network.
A better token-minting protocol, Zucco said, could be a game changer for entrepreneurs.
“If ethereum is going to die eventually, then we have very high hopes that this will be sustainable long term,” the notorious ethereum critic told CoinDesk.
This open-source token project, called Spectrum, includes contributions from investors at Fulgur Ventures and Poseidon Group, startups such as Bitrefill and Chainside, as well as support from crypto exchange giant Bitfinex.
The goal is to change the perception that bitcoin is too slow moving for experimentation.
Indeed, Bitfinex CTO Paolo Ardoino said in a press release that he hopes to issue a Spectrum-compatible version of the tether stablecoin by the end of the year.
“Bitfinex will continue supporting Lightning projects and features in our platforms,” Ardoino added. Spectrum, which uses the RGB colored coin standards anchored to bitcoin, allows people to issue tokens several layers above bitcoin’s base layer.
This would complement, rather than compete with, sidechain tools like Blockstream’s Liquid, as well as efforts to enable cross-currency swaps with the lighting network.
The fundamental difference here is that ethereum-based tokens bake complex logic, such as automated token distribution related to external factors, straight into the assets themselves via chunks of code called smart contracts.
Gregory Rocco, a staffer at ethereum venture studio ConsenSys, told CoinDesk that colored coins never really took off because, compared to ethereum’s built-in support for complex functions, the former required external coordination for the tokens to “represent something” beyond simple units. On the other hand, a Spectrum-compatible RGB token will be more like an international socket converter connecting the token to the bitcoin blockchain via the lightning network, and also externally to software that automates functions similar to smart contracts.
There’s still some abstraction, but some bitcoin advocates feel the security trade-offs are worth it.
“If you want to do something with tokens, we think Layer 3 is the right place to put it,” Zucco said of his Spectrum solution.
“With lightning now you can be competitive, fast, creative, reckless.”
Federico Tenga, co-founder of the startup Chainside, told CoinDesk some of his consulting clients have already asked for bitcoin wallets that support such units for use cases such as equity tokenization.
“Theoretically you could do anything you could do on ethereum,” Tenga said.
“Some people may use RGB on Liquid, ideally, if the standard is adopted, it would be useful across different protocols, maybe even centralized databases.
Even for atomic swaps, things like that.”
Read the full topic at
https://www.coindesk.com/startups-debut-first-protocol-for-issuing-tokens-via-bitcoins-lightning-network
Follow me on
Linkedin: https://www.linkedin.com/in/crypto-expert20
IF you be an admin for your telegram group you can order from the link
But, as it turns out, all he needed were the right partners.
What started as a client’s request for a more secure alternative to ethereum’s ERC-20 tokens will soon emerge as the first unique protocol for issuing tokens via bitcoin’s lightning network.
A better token-minting protocol, Zucco said, could be a game changer for entrepreneurs.
“If ethereum is going to die eventually, then we have very high hopes that this will be sustainable long term,” the notorious ethereum critic told CoinDesk.
This open-source token project, called Spectrum, includes contributions from investors at Fulgur Ventures and Poseidon Group, startups such as Bitrefill and Chainside, as well as support from crypto exchange giant Bitfinex.
The goal is to change the perception that bitcoin is too slow moving for experimentation.
Indeed, Bitfinex CTO Paolo Ardoino said in a press release that he hopes to issue a Spectrum-compatible version of the tether stablecoin by the end of the year.
“Bitfinex will continue supporting Lightning projects and features in our platforms,” Ardoino added. Spectrum, which uses the RGB colored coin standards anchored to bitcoin, allows people to issue tokens several layers above bitcoin’s base layer.
This would complement, rather than compete with, sidechain tools like Blockstream’s Liquid, as well as efforts to enable cross-currency swaps with the lighting network.
The fundamental difference here is that ethereum-based tokens bake complex logic, such as automated token distribution related to external factors, straight into the assets themselves via chunks of code called smart contracts.
Gregory Rocco, a staffer at ethereum venture studio ConsenSys, told CoinDesk that colored coins never really took off because, compared to ethereum’s built-in support for complex functions, the former required external coordination for the tokens to “represent something” beyond simple units. On the other hand, a Spectrum-compatible RGB token will be more like an international socket converter connecting the token to the bitcoin blockchain via the lightning network, and also externally to software that automates functions similar to smart contracts.
There’s still some abstraction, but some bitcoin advocates feel the security trade-offs are worth it.
“If you want to do something with tokens, we think Layer 3 is the right place to put it,” Zucco said of his Spectrum solution.
“With lightning now you can be competitive, fast, creative, reckless.”
Federico Tenga, co-founder of the startup Chainside, told CoinDesk some of his consulting clients have already asked for bitcoin wallets that support such units for use cases such as equity tokenization.
“Theoretically you could do anything you could do on ethereum,” Tenga said.
“Some people may use RGB on Liquid, ideally, if the standard is adopted, it would be useful across different protocols, maybe even centralized databases.
Even for atomic swaps, things like that.”
Read the full topic at
https://www.coindesk.com/startups-debut-first-protocol-for-issuing-tokens-via-bitcoins-lightning-network
Follow me on
Twitter: https://twitter.com/cryptoexpert20
IF you be an admin for your telegram group you can order from the link
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