According to CoinDesk, Lightning Labs has launched its Taproot Assets protocol on the main network, allowing for the issuance of stablecoins and other assets on Bitcoin and Lightning. The new protocol aims to provide developers with the necessary tools to make Bitcoin a multi-asset network while maintaining its core values and scalability, according to Ryan Gentry, director of development at Lightning Labs.
The company's goal is to enable foreign exchange transactions to be settled over the Lightning network. Lightning Labs claims that adding stablecoins to their applications is one of the major requests they receive from developers. The challenge for Taproot Assets will be to meet this demand without causing congestion on the Bitcoin network, similar to the issues caused by minting BRC-20 tokens via the Ordinals protocol earlier this year.
