Taro: A Taproot Asset Representation Overlay



Summary:

Taro is a set of tradeoffs that has certain limitations. The witnesses for transactions need to be put into Bitcoin transactions even though the Bitcoin layer doesn't understand them. There needs to be a constraint on Taro transactions which is understood by the Bitcoin layer, and multiple Taro coins can't consolidate their value into a single output because they only support a single linear history. Taro issuance is limited to a single event rather than potentially multiple events over time subject to special per-asset rules. Despite these limitations, Taro assets are straightforwardly and unambiguously colored coins.


Updated on: 2023-06-15T18:35:16.760376+00:00