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Lightning Labs CEO Elizabeth Stark on Lightning Network Taproot Assets
During FT Live’s Crypto and Digital Assets summit in London, Elizabeth Stark discussed the potential of Lightning Labs’ Taproot Assets protocol in enabling stablecoins on the Bitcoin network. This protocol aims to enhance Bitcoin’s functionality for issuing assets that can be transferred instantly and with low fees over the Lightning Network.
Building on the Lightning Network Taproot Upgrade
The Taproot Assets protocol builds upon the 2021 Lightning Network Taproot upgrade, expanding Bitcoin’s smart contract and scripting capabilities. This development opens up opportunities for stablecoins to leverage the benefits of the Lightning Network.
Advantages for Stablecoin Adoption
Stark emphasized that stablecoins face challenges on existing blockchains due to high transaction fees. She believes that Bitcoin, being the most secure and decentralized blockchain, is well-suited to facilitate stablecoin adoption.
Bitcoin and StableCoin Adoption Trends
Stark pointed out the increasing adoption of stablecoins, especially in regions affected by hyperinflation and currency devaluation. The COVID-19 pandemic has accelerated this trend, with users seeking stable stores of value like Bitcoin and stablecoins.
Lightning Labs’ Role in Fueling Adoption
Stark highlighted the need for infrastructure to support the issuance of stablecoins and real-world assets on the Bitcoin blockchain. Lightning Labs aims to provide the technology for asset issuers to tokenize real-world assets securely on the blockchain.
Benefits of Lightning Network for Transactions
One of the key advantages of using the Lightning Network for stablecoin transactions is the significantly lower fees compared to traditional financial systems. Stark noted that transacting with stablecoins on Lightning could cost as little as a cent, making it a cost-effective solution for global transactions.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
