- The hype surrounding BRC-20 assets and the Ordinals has led to unprecedented problems such as Bitcoin network congestion.
- The Lightning Network has developed a solution that addresses scalability issues in Bitcoin.
- Taproot Assets v0.2 looks to take BRC-20 assets and Ordinals off-chain.
The recent rise in popularity of the BRC-20 assets and arrangement It brought both challenges and opportunities to Bitcoin. Although these protocols have completely changed how people interact with and use bitcoin, the huge hype surrounding them has led to a massive hurdle for the network to overcome – network congestion.
On the one hand, mempool Bitcoin streaming With hundreds of thousands of unconfirmed transactions waiting to be processed. On the other hand, the record numbers have skyrocketed, recording a massive number Seven million total engravings. With the Ordinals and BRC-20 tokens showing no signs of slowing down, the network is grappling with a growing set of issues that require urgent resolution.
While some developers have suggested a A complete ban on ordinal performances As a potential remedy, Lighting Labs has developed a more practical solution: Taproot Assets v0.2. The new Taproot upgrade aims to address the issues head-on and provide a more viable path forward for Bitcoin.
What is the new Taproot upgrade?
Lightning Labs, developers of the Lightning Network, have it foot New upgrade to Taproot Assets protocol known as Taproot Assets v0.2. The updated protocol specifically addresses the latest version of Bitcoin Network congestion issues caused by BRC-20 assets.
Formerly known as Taro, the new protocol operates “off-chain to its fullest,” allowing unlimited assets to be minted and transferred within a single on-chain transaction. This approach allows users to enjoy the unauthorized nature of bitcoin While easily scaling their business without running into scalability issues.
With the new Taproot upgrade, users will soon be able to seamlessly integrate their BRC-20 assets into the Lightning Network for instant high-volume transactions with minimal fees, all without having to build an entire ecosystem from scratch.
Furthermore, the Taproot Assets v0.2 upgrade is designed to be developer friendly, taking advantage of the existing Taproot VM and using an address format that is familiar to Bitcoin users and unique to each asset.
Additionally, Taproot Assets v0.2 is compatible with light clients, allowing assets to be created anywhere around the world using less resource-intensive devices such as smartphones. This is a huge step forward, considering that users had to maintain a full, multi-gigabyte node Arbitrage To track assets on Bitcoin.
Why is the New Taproot upgrade important?
Since the inception of BRC-20 and the Ordinals earlier this year, users have been pouring into Bitcoin, recording all kinds of metadata, and creating all kinds of interesting tokens and applications. However, the unprecedented success of the new technology has led to many problems Bitcoin like never before.
More than 200,000 transactions Bitcoin mempools remain in limbo, exchanges struggle with withdrawals, and users panic about high network fees. However, The Ordinals continues to grow, collecting fees of over $36 million.
Interestingly, According to Lightning Labs, The current way to write the asset metadata directly into the block space is “inefficient”. What’s more is that Bitcoin, in its current form, is not designed for scalability.
Taproot Assets v0.2 looks to address these issues and make Bitcoin more scalable by taking asset issuance and transactions off-chain on the Lightning Network, making it a multi-asset network.
In addition, Lightning Labs has participated in enabling this version as well stablecoin Supporting users in emerging markets. The feature is still under development. However, once done, users can open Taproot Asset channels with an asset of their choice and connect it to the Lightning Network.
on the flip side
- Veteran core bitcoin developer Suggest ban ordinal and the entire BRC-20 due to the network congestion they caused.
- At the time of publication, the total market cap of BRC-20 tokens is $474 million. However, on May 9, the BRC-20 total market capitalization Crossing the billion dollar mark For a short period.
Why should you bother
The BRC-20 has forever revolutionized Bitcoin to become more than just a store of value. While Bitcoin’s core developers were hoping to ban the Ordinals, this new update could add to the hype and allow the technology to stick around for much longer.
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