New Bitcoin Token Issuance Platform Protocol Spectrum To Launch On Lightning Network
A new unique protocol that will use Bitcoin’s Lightning Network for the issuance of tokens will soon launch. According to Giacomo Zucco, the founder of the BHB Network, his could be a pivotal tool for many entrepreneurs all over the world. Zucco, who is known to be a heavy Ethereum detractor, has said that it will be a good alternative for Ethereum.
“If Ethereum is going to die eventually, then we have very high hopes that this will be sustainable long term,” said Zucco.
The project is called Spectrum and was made possible with some backing from investors in a few different firms including Bitrefill, Chainside, Poseidon Group and Fulgur Ventures. Bitfinex, the Hong Kong based, British Virgin Islands registered crypto exchange, is also a major contributor. It is hoped that Spectrum will prove to the sector, through the Lightning Network, that Bitcoin isn’t as slow as generally thought.
Speaking on Spectrum, the Chief Technology Officer of Bitfinex, Paolo Ardoino, has expressed his desire to have a version of the new platform that will support Tether (USDT). Ardoino said:
“Bitfinex will continue supporting Lightning projects and features in our platforms.”
Spectrum And Colored Coins
Furthermore, the new Spectrum would support the use of RGB colored coins. Colored coins are a way to expand the use of a cryptocurrency, say Bitcoin, by letting people create tokens that can be repurposed to represent other valuables. Colored coins are marked with specific metadata and can be used in many more ways than the original digital asset can.
For Ethereum, the main difference is that all tokens based on the platform embed other extra data or metadata into the main assets themselves using codes to do this to create smart contracts. According to ConsenSys’ Gregory Rocco, one major issue with the creation of Ethereum colored coins is that it is not as compatible with Ethereum’s base properties, as required. As stated, colored coins are built to represent other units of value and for that to happen with Ethereum, some control or harmonization has to be done externally.
However, if an RGB token suitably supported by Spectrum comes to light, it will have interesting applications as it will serve as a way for the token to use the Lightning Network to link with the bitcoin blockchain and at the same time, link to external platforms or software for other functions.
Zucco further said:
“If you want to do something with tokens, we think Layer 3 is the right place to put it. With Lightning, now you can be competitive, fast, creative, reckless.”
The co-founder of Chainside, Federico Tenga, also noted that:
“Theoretically, you could do anything you could do on Ethereum. Some people may use RGB on Liquid. Ideally, if the standard is adopted, it would be useful across different protocols, maybe even centralized databases. Even for atomic swaps, things like that.”
Federico also said that he has clients who are already interested in getting Bitcoin wallets that support these compatible units.
Do-It-Yourself (DIY) ERC-20 tokens became as widespread as it did because it was created with compatibility in mind so that it could support all wallets and platforms based on Ethereum. Similarly, the Spectrum is looking to create this same effect by providing comparable conditions to support the same level of compatibility. As it was with Ethereum, this is expected to allow all projects and startups ensure distribution with desirable levels of liquidity.
The Chief Compliance Officer (CCO) at Bitrefill has said that this could be very advantageous for the Bitcoin network. According to him, it will create a “playground where people are going to start doing things like they are trying to do on Ethereum.”
The CCO has also said that the firm is currently aiming to collaborate with more Bitcoin businesses to grow the Lightning Network. This goal was re-enforced since the firm successfully raised $2 million and also began recruitment.
Robert Paone, however, is not as optimistic. The Head of Growth at AirSwap is of the opinion that there is still a lot that has to be done if a Lightning Token is to properly compete with any ERC-20 tokens.
“The infrastructure around lightning is still not robust enough. Lightning Network is still a bit complex and difficult to interact with, at least in comparison to the ease of using an ERC-20 with MetaMask, MyEtherWallet, e.t.c.”
Regardless, Zucco is still very optimistic and has said that Spectrum will have increased use especially if Bitcoin becomes a more globally accepted currency.