NostrSwap Upgrades Into Nostr Assets Protocol: A Decentralized Trading Infrastructure Supporting Taproot Assets & Lightning Network.
NostrSwap upgrades to Nostr Assets Protocol to provide asset transfers within the Nostr ecosystem. The settlement and security of assets are handled by the Lightning Network, providing enhanced transaction speed, scalability, and security for Nostr users. Nostr Assets Protocol will serve as a layer connecting Nostr and Lightning Network.
NostrSwap was born with the aim to revolutionize the DeFi landscape and give greater control, transparency, and security to a new decentralized world.
The NostrSwap team envisions the building of an open trading infrastructure through the network effect of Nostr, which led the team to create the NRC-20 token standard, a technical standard for fungible tokens created using the Nostr Protocol.
Through the development process and numerous tests, the team has gathered insights and feedback from our community and partners, which reinforce the decision to move towards Nostr Assets Protocol.
i) Taking a deeper look at the current state of Nostr Protocol, the Nostr ecosystem is currently closely knitted with the Bitcoin ecosystem and it makes a lot of sense for the team to build in more support for Bitcoin’s recent & upcoming development such as Lightning Network and Taproot Assets.
- Lightning Network is developed as a second-layer protocol for Bitcoin. It enables off-chain transactions that do not need to be recorded on the blockchain, eliminating the need for mining and significantly enhancing transaction speed and affordability.
- Taproot Assets is a protocol that enables the issuance of digital assets on the Bitcoin blockchain, such as stablecoins or non-fungible tokens (NFTs). These assets can be transferred through traditional Bitcoin transactions or off-chain transactions using the Lightning Network.
ii) The current infrastructure enables the flexibility to support other token standards, which means we will pivot beyond BRC20, given the current market sentiments.
Hence, the team decides to dedicate effort to building support for Lightning Network and Taproot Assets. This will rebrand NostrSwap to Nostr Assets Protocol.
What is Nostr Assets Protocol?
Nostr Assets Protocol is an open-source solution that brings Bitcoin Taproot Assets and Satoshis to the Nostr ecosystem.
It is powered by Nostr Assets Daemon (NAD), a process that acts as a gateway to introduce digital assets into the Nostr ecosystem, such as stable coins or non-fungible tokens (NFTs). It also serves as a wrapper for Taproot Assets and the Lightning Network.
The Lightning Network handles asset settlement and security, providing enhanced transaction speed, scalability, and security for asset transfers within the Nostr ecosystem.
Users can send and receive these assets using Nostr’s public and private keys, allowing them to effectively manage their assets on Bitcoin, Lightning Network, and Taproot via their Nostr Accounts.
Anyone can also choose between running their own Nostr Assets Node for self-custodial of their assets or going with custodial mode for quick and easy access.
More about Nostr Assets Protocol
Nostr Assets Protocol will value add to user adoption, user entry barriers, liquidity, decentralized infrastructure, and commercialization challenges within both the Lightning Network and the Nostr ecosystem, promoting their growth, utility, and overall success.
- Expanding the use cases of Lightning Network Assets
- Lowering user entry barriers
- Enhancing liquidity & asset management
- Fostering decentralized business infrastructure
- Accelerating commercialization & venture capital support
The details about Nostr Assets Protocol:
Why is this better for the community and the project?
The transition of NostrSwap to Nostr Assets Protocol brings several advantages to both the community and the project:
Defi Adoption in the Bitcoin Ecosystem
With its support for Taproot Assets and Lightning Network, Nostr Assets Protocol becomes a pivotal player in promoting and facilitating the adoption of decentralized finance (DeFi) within the Bitcoin ecosystem. By enabling efficient and secure asset trading, the protocol enhances the overall DeFi landscape and encourages broader participation.
Early Integration of Taproot Assets
Being prepared to support Taproot Assets when they are officially released on the Bitcoin mainnet places Nostr Assets Protocol in a favorable position. Early integration allows the project to seize the opportunities presented by Taproot, positioning itself as an early adopter and innovator in the evolving cryptocurrency landscape.
Zero-Gas Network Fees
By envisioning a long-term goal of enabling users to trade assets with zero-gas network fees, Nostr Assets Protocol addresses a crucial pain point in the current cryptocurrency ecosystem. Reducing transaction costs enhances accessibility and usability, making the protocol more attractive to users and encouraging greater adoption.
- Integrate support for Lightning Network
- Integrate support for Taproot Assets (Testnet)
- Launch Satoshi on Nostr Assets Protocol
- Launch USDT on Nostr Assets Protocol
- Daemon version 0.1 Launch
- Integrate support for Taproot Assets on Lightning Network
- Daemon version 0.2 Launch (Custodial & Self-custodial)
- Nostr Assets DAO
Milestones for Discussion
- Integrate AI support