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Lightning Labs, a Lightning Network infrastructure business, has published a beta version of the Taro daemon, a new software tool that enables Bitcoin developers to generate, transmit, and acquire assets on the Bitcoin blockchain.
Taro - A Taproot-Based Protocol
Taro is a Taproot-based protocol unveiled in April that enables Bitcoin to create assets like stablecoins on the Bitcoin blockchain. The assets can be exchanged for quick, high-volume, and low-cost transactions via the Lightning Network. Lightning Labs claims that the combination of Bitcoin, Lightning, and Taro would make it feasible to develop peer-to-peer stablecoins that are native to Bitcoin and Lightning, with quick settlements, cheap transaction costs, and no financial intermediates. Lightning Labs stated on Wednesday that it might create a scenario in which users may have U.S. dollar-denominated and BTC-denominated balances or other assets within the same wallet and easily and quickly transfer the money across the Lightning Network.
Support For Lightning And Bitcoin
Taro supports multi-asset networks for both Lightning and Bitcoin. Users can launch Taro channels, which connect at the edges and communicate with the current Lightning Network. Taro would use the almost 5,000 BTC now allotted to the network as a global routing currency rather than beginning from zero and establishing a new ecosystem of nodes and liquidity. A large and deep payment channel graph already exists, which places The Lightning Network and Taro in a unique position to meet this market requirement.
Future Plans Of Taro Daemon
The business stated in the post that the Taro Daemon would have additional improved capabilities, such as "universe functionality," in the next few months. With the help of universes, users and asset issuers could more efficiently interact with Taro asset data, supply issuance, and offer evidence of asset origin. The company would attempt to integrate the Taro protocol into Lightning Network Daemon (lnd) when the on-chain functionality is finished, introducing Taro assets to the Lightning Network. Lightning channels that can transmit and receive Taro assets must first have simple, undisclosed Taproot channels implemented in lnd.