Forex in this article
• Lightning-Lab: handle all currencies in the world easily and Bitcoin-based via Taro
• The platform is scheduled to be released by the end of the year
• $70 million for Lightning Labs in B round of funding
“People will be able to seamlessly jump back and forth between bitcoin and, say, a US dollar stablecoin or peso, euro, yen, etc. And [diese Währungen] They can be sent worldwide, immediately and for extremely low fees.” With these words, CNBC quoted Lightning Labs CEO Elizabeth Stark on her plans to publish the so-called Taro Protocol by the end of the year. Lightning Labs announced this in a press release at the beginning of April.
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The goal: to process all currencies in the world via Bitcoin
Lightning Labs is a Bitcoin-based financial services provider. After growing calls for Lightning access for fiat-based stablecoins from regions with emerging markets last year, Lightning Labs decided to expand the technology, according to the press release. “With this technology, you could do all the world’s currencies through bitcoin,” Stark told CNBC.
Bitcoin volatility does not matter when transacting through Taro
Taro should be designed to be as uncomplicated and user-friendly as possible: You should be able to send and receive different currencies with just one account. In order to prevent transactions from being made in the wrong currency by mistake, currency-specific transaction addresses should be set up for each customer.
The currency transactions should be processed via the Bitcoin blockchain, but not be tied to the volatility of Bitcoin itself. The concept is that customers can decide for themselves whether they want to store their money in stablecoins or as Bitcoin. According to Lightning Labs, this is to make the technology more accessible to people who cannot financially afford to lose value due to high Bitcoin volatility. One of the goals of Lightning Labs is to be inclusive. The press release goes on to explain that customers don’t even need a bank account to use Taro. “[Taro] is one of those things where people don’t even know exactly how the credit card system works – it just works,” Stark told CNBC.
Taro does not change bitcoin as a cryptocurrency
In fact, Lightning Labs gives anyone interested an insight into the work on the Taro Protocol via GitHub. In the press release, the company explains that taro is only possible thanks to the Bitcoin update Taproot released at the end of 2021, which according to CNBC has increased the security, privacy and transaction capacity of the blockchain. CNBC goes on to explain that the functionality of the Bitcoin nodes has been optimized in the Taro Protocol – so that the new platform can handle hundreds of thousands of transactions per second, not five, as with Bitcoin.
Investors who wish to continue investing in Bitcoin as before will not be affected by Taro: Using the Bitcoin blockchain as the basis for Taro will not affect the functioning of the cryptocurrency itself or the number of units in circulation, according to business magazine Forbes.
Lightning Labs Raises $70M in B Funding Round
In the Taro Protocol announcement, Lightning Labs writes, “We see Taro as a major step in the bitcoinization of the dollar, combining the best of both worlds by 1) issuing assets such as stablecoins on the most decentralized and secure blockchain, Bitcoin, and 2) gives users the ability to transact via the fastest global payment network with the lowest fees, Lightning.” Feedback is currently needed from developers on previous work on the new technology.
In addition to the Taro information, Lightning Labs announced in the press release that it had raised a total of $70 million in Series B funding.
Olga Rogler / Editor finanzen.net
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