A one of its kind protocol that will issue tokens through Lightning network of Bitcoin has been officially launched. The token project, referred to as Spectrum, is an open-source project and is touted to be the game changer.
As per Giacomo Zucco, the co-founder of BHB Network, it all started when a client requested for an alternative which is also more secure to the widely utilized ERC-20 tokens of Ethereum. Spectrum will be a sustainable option for the long term, states Zucco.
The Spectrum project has multiple investors, both established and start-up firms. Its contributor list includes Fulgur Ventures, Poseidon Group, Chainside, and Bitrefill. It has also garnered support from one of the prominent digital currency exchange platforms Bitfinex. The mission of the project is to establish the fact that Bitcoin isn’t that slow-moving as it is believed to be when it comes to experimentation.
Interestingly, Paolo Ardoino, the CTO of Bitfinex, stated that they are hoping to issue a version of the stablecoin Tether that will be compatible with Spectrum before the current year ends. Continuing further, he said that Bitfinex would continue to support the Lightning projects as well as features on its platform.
It was learned that Spectrum utilizes coin standards that are RGB colored and Bitcoin anchored. It will let people issue tokens a few layers above the base layer of Bitcoin. This way, it would complement the sidechain tools instead of competing with them. At the same time, it would also strive to facilitate cross-currency swapping with the Lightning network.
The RGB tokens compatible to Spectrum will connect tokens to the blockchain of Bitcoin through the Lightning Network. It will also externally connect to software which automates functions, much like smart contracts do. According to Zucco, lightning network will allow you to be fast, competitive, reckless, and creative. So if one intends to be working with tokens, then Layer 3 is the perfect place for it.
What’s more, is, the team of Spectrum is looking forward to offering a DIY bitcoin toolkit, similar to its Do It Yourself ERC-20 token counterparts. In other terms, the contributors of Spectrum want to offer the very first such token standard that is Bitcoin-centered, which will be using the Lightning Network for almost-instant transactions. This protocol will be first promoted by Bitfinex through its upcoming Tether variant.
It is likely to create a snowball effect that could transform the ecosystem of Bitcoin into a platform where people would begin doing things the way they do on the Ethereum platform, believes John Carvalho, CCO of Bitrefill. He also said that their goal is to partner with more businesses active in bitcoin space for the expansion of the lightning network.
However, Robert Paone who heads the growth division of AirSwap said that it would be a huge task for lightning compatible tokens to match up to ERC-20 tokens as the network of lightning is a little complicated to connect with. Moreover, its infrastructure is not as robust, whereas, in comparison, ERC-20 offers ease of utility to a great extent.