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What is Taproot Assets Protocol?
A simple explanation of Taproot Assets Protocol (TAP) for non-developers
TAP is not a blockchain and is not in any way related to ERC-20 or other tokens. TAP is also not related to TARI, $TARO token or Taroverse.
TAP is a protocol - a set of rules - that defines how to write onto the Bitcoin blockchain to represent assets other than Bitcoin.
TAP Protocol allows for representation of fungible assets (alt-coins) as well as Non-Fungible Tokens (NFTs) assets on Bitcoin blockchain.
TAP Asset / Taproot asset information is split into two parts - one part is stored on Blockchain and the other part is stored by the owner of the asset. The part that is held by the owner is passed from owner to owner via messages on the Lightning network.
There are two types of Taproot Assets:
- Curriencies / Fungible assets / Alt-coins
- Collectibles / Non-fungible tokens / NFTs
All Taproot Assets have the following user-defined attributes:
- Name
- Metadata
- Supply
- isNFT
As of now TAP does not add or allow for addition of any utility to the currencies and tokens represented on TAP.
All utility of Taproot Assets needs to be provided by the minter / maintainer of the asset. In other words if Bob mints a TAP stablecoin called BobUSD. Bob is responsile for making sure that BobUSD is always equal to 1 USD . If Alive mints a a Taproot asset representing tokenized stock of Apple Inc. called AliceAAPL, Alice is responsible for ensuring AliceAAPL has the same value as the real stock.
Fungible assets can be minted in emmisions where the minter decides to mint more currency after the initial minting.
TAP currencies can in theory be transferred on the lightning network. This functionality is being built right now and is not supported yet. TAP NFTs cannot and will not be transacted on the lightning network.
Self-custody of Taproot Assets requires that one operates a tarod node. Tape connects to lnd to access blockchain and the lightning network.
Tiramisu wallet allows users to hold and transfer assets using a web UI without the need to install tarod or set up a lightning node.
Last modified 4mo ago