Published on: 2021-10-15T14:59:31+00:00
In response to the author's query, ZmnSCPxj discusses the possibility of issuing assets on the Lightning Network. They mention plans for the RGB colored coin project, which aims to make channels compatible with issued assets. However, this introduces complications when it comes to channel gossip and requires proof of the existence of colored coins to any node on the LN. Blockstream is also planning to include support for Liquid-issued assets in C-Lightning.The assumption is that there would be a Lightning Network where channels have different asset types, allowing users to forward payments through any channel. However, this would involve an asset conversion fee if the incoming and outgoing assets differ. Unfortunately, the American Call Option problem poses a challenge to using issued assets on Lightning, even if efforts are made to enable non-Bitcoin assets on Lightning channels.To address this problem, several solutions are proposed. These include trust-requiring solutions, Ethereum-based solutions, and Barrier Escrows. The CJP trust-requiring solution involves relying on trusted parties, while the Ethereum-based solution is outlined in a research paper. Barrier Escrows, although still requiring trust, offer a service where the exact use of their service is concealed from them.Overall, the author seeks information on the feasibility of issuing assets on the Lightning Network and the processes involved. They inquire about ongoing or planned initiatives in this area and mention potential use cases for tokens on LN, such as decentralized exchanges, stablecoins, and liquidity improvement.
Updated on: 2023-07-31T23:52:53.976516+00:00