Lightning Labs launches Taro’s alpha version, aims to Bitcoinize dollar

Taro wants to make it possible for programs to give its users access to stablecoins that are native to Lightning and Bitcoin.

The Taro daemon, which will allow Bitcoin developers to create, send, and receive assets on the blockchain, has been released as an alpha version, according to Lightning Labs, the company that created the Lightning Network.

The company initially launched Taro, the Taproot-powered protocol, in April to issue a large number of assets that can be transferred instantly through Bitcoin with cheap transaction fees. By permitting the issuance of assets, such as stablecoins, on Bitcoin while concurrently enabling users to transfer those assets on Lightning, the release is hailed as the first step in the process of “Bitcoinizing the dollar.”

According to Lightning Labs, the Taro daemon will also include improved capabilities, such as universe capability that will let users and asset issuers provide evidence of the origin and issuance of their assets. Additionally, another function that makes it simple to interact with Taro asset data will be implemented.

Lightning Network’s plans

After on-chain functionality is complete, Lightning intends to work on integrating the Taro protocol into LN, welcoming Taro assets into the Layer 2 payment protocol. The company said: 

“We’re releasing this initial version of the daemon to continue to solicit feedback from the community and build this open source protocol in public. Given the alpha, testnet-only nature of the daemon, we encourage developers to explore how Taro will fit into their products, understanding that it will continue to be revised and improved as we progress to a mainnet release.”

In the coming days, Taro wants to make it possible for programs like Bitnob, Paxful, Breez, Ibex Mercado, Strike, and Taro to give its users access to stablecoins that are native to Lightning and Bitcoin. For users who want to send money across LN, developers can create USD and BTC balances (or other assets) in the same wallets.

While Lightning Network nodes, channels, and capacity broke record in 2021, the recent market crash hampered TVL momentum, resulting in a drop from $172 million to around $70 million in just two months.