Startups Debut First Protocol for Issuing Tokens via Bitcoin’s Lightning Network

Startups Debut First Protocol for Issuing Tokens via Bitcoin’s Lightning Network

 

Many bitcoiners thought it would be a cold day in hell when BHB Network co-founder Giacomo Zucco admitted that all tokens aren’t inherently scams.

But, as it turns out, all he needed were the right partners. What started as a client’s request for a more secure alternative to ethereum’s ERC-20 tokens will soon emerge as the first unique protocol for issuing tokens via bitcoin’s lightning network.

A better token-minting protocol, Zucco said, could be a game changer for entrepreneurs.

“If ethereum is going to die eventually, then we have very high hopes that this will be sustainable long term,” the notorious ethereum critic told CoinDesk.

This open-source token project, called Spectrum, includes contributions from investors at Fulgur Ventures and Poseidon Group, startups such as Bitrefill and Chainside, as well as support from crypto exchange giant Bitfinex. The goal is to change the perception that bitcoin is too slow moving for experimentation.

Indeed, Bitfinex CTO Paolo Ardoino said in a press release that he hopes to issue a Spectrum-compatible version of the tether stablecoin by the end of the year.

“Bitfinex will continue supporting Lightning projects and features in our platforms,” Ardoino added.Spectrum, which uses the RGB colored coin standards anchored to bitcoin, allows people to issue tokens several layers above bitcoin’s base layer. This would complement, rather than compete with, sidechain tools like Blockstream’s Liquid , as well as efforts to enable cross-currency swaps with the lighting network.The fundamental difference here is that ethereum-based tokens bake complex logic, such as automated token distribution related to […]