Lightning Labs, a developer of software that powers the Lightning Network, has successfully tested Taproot Assets, a new system designed to issue stablecoins on the Bitcoin blockchain.
The new protocol is a clever twist on Taproot, the latest upgrade to hit Bitcoin. Taproot enhances how the blockchain works by introducing a new tree structure that lets developers tuck any type of asset metadata into an existing output. It also capitalises on Schnorr signatures, which streamline everything and boost scalability, enabling transactions to hop across the Lightning Network.
So, very soon we will see some stable coins unfold on lightning. I want to know how Stackers view this development?
Is it good for Bitcoin?
Or very nasty one?
In my opinion through whatever I learnt about lightning taproot is layer 2 of Bitcoin and it is a scaling solution. Can Bitcoin stable coin really solve the scaling problem?