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Taro is going to decentralize the global forex market with Bitcoin and Lightning

Taro is going to decentralize the global forex market with Bitcoin and Lightning

The Lightning Network is a protocol that can theoretically scale Bitcoin to a transaction capacity of millions of transactions per second. Recently Lightning Labs introduced a feature with the Taro protocol that turns Bitcoin and the Lightning Network into a multi-asset network.

Decentralizing the Global Forex Market

The goal of Lightning Labs with Taro is to “decentralize the entire global forex market into a protocol that anyone can run on a Raspberry Pi.” For those who don’t know, a Raspberry Pi is a cheap computer that people often use to run Bitcoin nodes. A Bitcoin node is a computer that runs the Bitcoin software and retrieves and controls the entire blockchain (transaction history).

The question is whether Lightning Labs is exaggerating with this or whether they actually have a good idea to make these wild plans a reality. In theory, Taro can bring assets such as stablecoins to the Lightning Network that you can send and receive via this network super fast and practically free of charge.

How does Taro work?

Taro is a protocol built on the Lightning Network. In principle, Lightning Labs could also have chosen to build its own network, but why not use Lightning? After all, it already contains more than 4,000 Bitcoin and the infrastructure is already starting to take shape.

By integrating Taro with normal Lightning Nodes, it is possible to exchange Lightning Dollars for Bitcoin or vice versa at minimal transaction costs. Every Taro transaction on the Lightning Network converts to Bitcoin on the first step, then arrives at its destination as a Taro asset.

What is a Taro Asset? A Taro asset can basically be anything. US dollars, the euro or any other fiat currency. “The sender can pay in a currency of their choice and the recipient can indicate which currency he or she wishes to receive”, thus Sergei Kotliar on Taro. So promising technology, which could make Bitcoin a lot more interesting for many people.

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