The developers working on Lighting Network applications continue to find new use cases and functionalities for the world's first crypto. The Lightning Network, in combination with a variety of other upgrades, has opened the door for smart contract functionality on par with competitors. Here's a look at how Bitcoiners continue to expand the network and why the new BRC-20 tokens standard matters.
The BRC-20 token standard is one of the most significant upgrades to the network's capabilities in years. This standard makes it possible for developers to create and innovate while retaining interoperability. The concept of a token standard was pioneered by ETherum when they launched the ERC-20 token which remains the most popular in the world.
The BRC-20 token standard was first introduced on March 8th by an anonymous developer called Domo. He explained the concept and how it could benefit the entire sector. He also spoke on how BRC-20 assets would integrate seamlessly with Lighting Network wallets, exchanges, and payment processors.
Taproot Upgrade – Smart Contract Functionality
The recent Taproot upgrade has opened the door for a new world of Bitcoin-centric assets to enter the market. The original update was called “Taro” but was rebranded as part of the platform's new strategy. The goal of the upgrade was to eliminate the need to use Ordinal inscriptions of JSON data to deploy token contracts which is the current method.
The Taproot upgrade improves the creation process and reduces the steps required to create digital assets on the Bitcoin mainnet in multiple ways. The protocol alleviates some of the technical roadblocks that had hindered the process beforehand. Consequently, the new approach is now more similar to Ethereum and other competitors thanks to the upgrade. Best of all, the new process costs 4x less.
Lightning Labs is one of the premier teams behind Lighting Network development. They recently unveiled the taproot upgrade which opened the door for the BRC-20 standard. The team boosts that the new standard will enable Bitcoin to remain competitive by empowering creators to issue assets and conduct cheap transactions.
Bitcoinize the Dollar – Smart Contract Functionality
The new token standard opens the door for stablecoins issued on Bitcoin. Already, this month has seen the issuance of the first USDT (Tether) tokens. Bitcoin-backed stablecoins offer the best of both worlds in terms of stability and security.
Bitcoin Virtual Machine (BVM)
The Bitcoin Virtual Machine (BVM) operates like the EVm for Ethereum. It's the system that enables distributed applications to execute complex smart contracts. The BVM could be a game changer as the Taproot upgrade now makes it a viable option.
Bitcoin Leverages the Lightning Network to Expand Functionality
The latest upgrades to Bitcoin’s functionality are sure to please the community. There has long been a desire to issue more assets on the Bitcoin mainnet. The integration of the Lightning Network makes that possible without adding to the network congestion. As such, the combination could be exactly what's needed to bring Bitcoin in line with today's top-performing protools.