Author: Christian Moss 2021-12-06 12:38:30
Published on: 2021-12-06T12:38:30+00:00
The discussion is about the possibility of using Lightning Network to make transactions with OP_RETURN opcode for NFTs on Bitcoin. However, it is not possible because lightning relies on liquidity to work, and NFTs are not liquid. The best off-chain solution to NFTs on Bitcoin is using Ruben Somsens state chain protocol, which allows swapping utxos off-chain, and those off-chain utxos could harbor an op return/nft. OP_RETURNs do not have ownership according to the bitcoin network, but a protocol can be defined that associates an OP_RETURN with ownership and ownership could then be transferred via lightning by sending associated currency via lightning. It is also possible to define a protocol that gives divisible ownership to OP_RETURNs, including via lightning. This would need a protocol layer parallel to Bitcoin/Lightning that stores and reads all Bitcoin transactions and the ones which involve the node's channels as well as the ones with the OP_RETURN, just like CounterParty does right now with the primary ledger.
Updated on: 2023-06-03T06:39:34.228851+00:00