What's the Latest on Bitcoin Cash Network's Token Development Scene? Wormhole and SLP Updates

The infrastructure around Bitcoin Cash (BCH) network gets stronger by the day. The arrival of Wormhole and Simple Ledger Protocol (SLP) the token creation process sees accelerated.

Tokens created so far are Vote (VOTE), Useless (USL), Killthebeast (KTB), Falcon (FLC), Official SLP Token (SLP), Berniecoin (BERN), and Dogecash (DOGE).

Smart Contract Solution By Wormhole

Any token issuance proposal that requires certain consensus upgrade will inevitably cause problems, including technical risks, harsh conflicts and huge controversy among community developers. Such controversial proposals often end in failure.

The debate could be beneficial to the community and can be regarded as an insurance mechanism to prevent “radical” initiatives being deployed and to ensure the stability and security of the network.

Yet it might as well hinder innovation at the protocol level. The prolonged debate around block size which lead to the birth of BCH is even more unavoidable evidence of social psychology. According to the WhitePaper:

“After extensive research, the Omni layer protocol, a token issuance solution via OP_RETURN opcode, drew our attention. The Omni layer protocol runs on Bitcoin network and is also the foundation for the daily distribution and circulation of USDT.

Fortunately, the Omni layer project adopted the MIT open source license which allowed us to fork the project, transplant to BCH network with minor modification and meet the needs of token issuance over BCH. To distinguish the protocol from the original Omni protocol over Bitcoin, we refer to the protocol as the Wormhole protocol and refer to the corresponding native token as Wormhole Cash (WHC).”

Simple Ledger Protocol

You can think of SLP as a ‘transaction within a transaction’. SLP transactions live within a special output known as OP_RETURN, which is a part of a standard Bitcoin Cash transaction. If Alice wants to send Bob some tokens, she sends a minimal (dust) amount of BCH, and the transaction also contains the data to transfer the tokens.

In many ways, SLP is like Ethereums ERC-20 but for BCH. Tokens can be traded, spent, or given to someone else. They operate in a distributed manner like most cryptocurrencies. Custom token behavior can be added using bitcoin Script programming language in novel ways.

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Sritanshu Sinha
Sritanshu Sinha
Sritanshu has a keen interest in emerging technologies, startups and economic anthropology. He holds the view that cryptocurrencies are the best bet humanity has got to push the world towards a borderless economy.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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