Lightning Fast Global USD Transactions on Way With New Protocol

Source : beincrypto.com

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Lightning Labs has launched a new protocol that allows the issuance and transfer of assets on the Bitcoin blockchain, including stablecoins.

Taro, designed by the company’s CTO, Olaoluwa Osuntokun, enables all Lightning Network participants to benefit from Lightning’s nearly free, virtually instant, global transaction capability, without exposure to BTC’s volatility.

In addition to supporting multiple asset types, the new protocol will allow users to perform cross-chain atomic swaps, eliminating the need for centralized exchanges. And all major wallets will be supported. 

Taro aims to give developers the flexibility to move stablecoins from the Bitcoin network to the Lightning Network while maintaining the privacy and security of the Bitcoin network.

“One of our core tenets at Lightning Labs is solving real problems for real people, and we’ve talked to myriad community members in emerging markets who’ve told us what a big difference stablecoins on bitcoin and Lightning would make in their economies,” says Lightening Labs’ CEO Elizabeth Stark. 

What is the Lightning Network?

The Lightning Network is an independent network that allows for faster transactions than typical Bitcoin network transactions. These transactions occur outside the main Bitcoin blockchain, reducing energy and time spent processing the transactions. 

Later, these transactions are recorded on the main Bitcoin blockchain, meaning users can send and receive BTC anywhere in the world with minimal fees.

Taproot upgrade key to Taro’s success

The new Taro protocol is based on a new address format known as bech32. Its security mechanism is based on embedded consensus. All transactions are verified on the Bitcoin blockchain before being transmitted to the Taro network.

The activation of Taproot last Nov increased the Bitcoin blockchain’s security, privacy, and transaction throughput, which also had the consequence of empowering more sophisticated smart contracts on Bitcoin.

Taro makes Bitcoin and Bitcoin’s Lightning Network a rival to SWIFT and commercial banking, and it is expected that emerging markets, where access to the global economy and financial tools has been historically limited, may benefit the most.

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David is an electronic engineer with nine years of experience. He joined BeInCrypto to combine his passion for writing and his interest in fast-moving industries, cultivated from his university days. He hopes to make crypto easy to understand.

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