Author: Alex Schoof 2022-04-07 19:11:39
Published on: 2022-04-07T19:11:39+00:00
Laolu Osuntokun has developed a protocol named Taro that enables the issuance of normal and collectible assets on the main Bitcoin chain. It uses Taproot script tree to commit extra asset structured metadata based on a hybrid merkle tree called Merkle Sum Sparse Merkle Tree (MS-SMT). MS-SMT combines the properties of a merkle sum tree with a sparse merkle tree, enabling things like easily verifiable asset supply proofs and efficient proofs of non-existence. Taro asset transfers are embedded in a virtual/overlay transaction graph which uses a chain of asset witnesses to provably track the transfer of assets across taproot outputs. Taro also has a scripting system that allows for programmatic unlocking/transfer of assets. In the first version, the scripting system is actually a recursive instance of the Bitcoin Script Taproot VM, meaning anything that can be expressed in the latest version of Script can be expressed in the Taro scripting system. Future versions of the scripting system can be made to do more.Ruben Somsen, who examined RGB extensively, believes that some of the issues he uncovered in that project also apply here. The biggest issue revolves around the scripting expectations for this protocol. Conditional scripts won't be possible if the satisfaction of the condition is not recorded publicly on-chain. There are two levels of scripting. At the Bitcoin level, the UTXO is encumbered by the Bitcoin script, then at the Taro level, there is another script. If the satisfaction of the condition is not recorded publicly on the mainchain, Taro script fundamentally cannot handle conditional payments, which is the basis for any meaningful script other than self-encumbering covenants. Ruben also points out that one of the core concepts of Taro/RGB is that the sender of the token has to reveal the history to the recipient.Laolu Osuntokun responded to Ruben's points and clarified that Taro doesn't support conditional payments that aren't enforced on-chain. He also mentioned that Taro's scripting system is intended to be used for more than just conditional payments and that it would be possible to implement some conditional payments on Taro if they can be enforced on-chain. Laolu also said that Taro's asset transfer model follows the Unspent Transaction Output (UTXO) model used by Bitcoin and that new UTXOs are generated for recipients of Taro tokens.The Taro layer is set to introduce new functionality such as covenants while also supporting integration with the Lightning Network (BOLTs). This is made possible through the Taro design which employs a scripting system that emulates the existing HTLC structure and allows for multi-hop transfers of Taro assets. The protocol chooses to only recognize "assets at the edges" rather than modify the internal network, meaning only the sender and receiver need knowledge of and validate the assets. By employing this deployment route, there is no need to build up an entirely new network and liquidity for each asset. Instead, all asset transfers will utilize the Bitcoin backbone of the Lightning Network, resulting in increased demand for LN capacity and more routing revenue for the Bitcoin backbone nodes. The BIPs are a multi-part suite that includes the main Taro protocol, the MS-SMT structure, the Taro VM, the Taro address format, the Taro Universe concept, and the Taro flat file proof format. All the BIPs can be found on GitHub.The Lightning-dev mailing list and bitcoin-dev mailing list are the two forums where discussions about these developments can take place.
Updated on: 2023-06-15T18:32:05.346717+00:00