UXUY Founder Kevin: How to Build the Last Mile for Taproot Assets on the Bitcoin Lightning Network?

On July 24, 2024, Lightning Labs officially announced the launch of Taproot Assets on the Bitcoin Lightning Network, which is undoubtedly exciting news for every developer actively building on the Lightning Network.

With the release of Taproot Assets V0.4.0, assets can be minted directly on the Bitcoin network and sent instantly with extremely low TX fees via the Lightning Network. Relying on the security and decentralization of Bitcoin, Lightning Labs' advocacy for "tokenizing dollars and global financial assets with Bitcoin" is becoming a reality.

UXUY is already prepared for the Lightning Network, and today I will try to introduce the changes brought by the launch of Taproot Assets on the Lightning Network, how ordinary users can participate in the huge opportunities of the Bitcoin and Lightning multi-asset ecosystem, and how UXUY is building the last mile for Taproot Assets.

Taproot Assets V0.4.0 Accelerates Large-Scale Adoption of the Lightning Network

UXUY is actively promoting the large-scale adoption of the Bitcoin Lightning Network, allowing users to send and receive Bitcoin at lightning speed through the UXUY APP or the Telegram-based @UXUYbot, with transactions completed in a very short time and without TX fees. Currently, the number of UXUY Bitcoin Lightning Network users has surpassed 1 million.

As a core contributor to the Lightning Network, UXUY is building the infrastructure for Taproot Assets: participants can query comprehensive asset information and proof of asset ownership through the Universe service provided by UXUY, while also updating all data required for developers to maintain Taproot Assets. This service has also received support and recognition from Lightning Labs. UXUY is maintaining close contact with the Lightning developer community, and currently, there are 170,000 types of Taproot Assets that have been minted and synchronized on the mainnet.

With the launch of Taproot Assets V0.4.0, the large-scale adoption of the Lightning Network will accelerate once again. As stated in UXUY's article "Stablecoins: The Biggest Variable in the Bitcoin Ecosystem," the Lightning Network is becoming the interoperability layer for an increasing number of global exchanges, wallets, and merchants, and stablecoins, which are rapidly growing in market share in the crypto world, will certainly not be absent.

In 2023, the annual trading volume of stablecoins reached 11 trillion USD, and according to K33 Research, the scale of stablecoins is expected to reach 30 trillion USD in 2024, with a significant portion of the new market share being absorbed by the Lightning Network. In addition, Taproot Assets V0.4.0 has also updated the Request for Quote (RFQ) service for asset trading on the Lightning Network, allowing edge nodes of the Lightning Network (routing nodes that connect Taproot Assets users with the broader Lightning Network) to negotiate atomic swap rates between Taproot Assets and Bitcoin while forwarding payments, ensuring traders receive the best quotes and greatly expanding the ability to pay Taproot Assets invoices to any Lightning wallet without needing to understand Taproot Assets.

In terms of security, Taproot Assets introduces a trustless on-chain interaction mechanism, allowing users and developers to exchange assets for Bitcoin or other Taproot Assets via PSBT (Partially Signed Bitcoin Transaction) without trusting counterparties or centralized institutions, ensuring transactions are completed in a decentralized manner. To protect user asset security, Taproot Assets introduces a multi-signature mechanism, allowing asset owners to customize settings that include but are not limited to hot keys, time-locked cold keys, and other multi-custody methods to build an asset fortress.

Crypto Equality and Node Network

As the world's first DEX to access Bitcoin Lightning Network nodes, UXUY currently has a total capacity of over 13 BTC in its Lightning Network nodes and has established connections with mainstream Lightning nodes such as Binance and OKX. For most projects or users wanting to participate in the Bitcoin and Lightning multi-asset ecosystem, establishing Lightning nodes and completing node connections to issue Taproot Assets still presents significant challenges, which does not align with UXUY's advocacy in the Crypto Equity Manifesto for "building a walled-free crypto ecosystem that allows everyone on Earth to benefit."

Therefore, UXUY will launch a node network to build the last mile for Taproot Assets to reach users. Every participant can build their own nodes and channels through the node network and issue their own Taproot Assets at a very low cost. Relying on the node network, the issued assets quickly connect with other nodes in the network, providing liquidity for asset trading.

UXUY sincerely invites more partners who love the Lightning Network and continuously promote crypto equality to join us, whether you are developing on Taproot Assets, providing wallet solutions, liquidity providers, or users wanting to own private dedicated nodes:

• Rapidly create Lightning nodes
  No need to learn coding knowledge or the underlying logic of the Taproot Assets protocol; you can quickly create your own node through the node network.
• Technical integration
  We will actively integrate exchanges, web wallets, mobile wallets, merchants, developer tools, and other products or standards to create a better developer environment.
• Complete node Lightning channel connections
  Establish relationships with other nodes in the node network, enjoying asset returns while gaining relatively rich liquidity.
• Promote the widespread adoption of the Lightning Network
  Build developer and user communities to continuously promote the large-scale adoption of the Lightning Network and Taproot Assets.

I firmly believe that with the support of the node network, UXUY will successfully connect the last mile of Bitcoin Lightning Network Taproot Assets, promoting the practice of crypto equality and the large-scale adoption of the Lightning Network, allowing everyone on Earth to benefit.