Taproot Assets, a new protocol based on the Bitcoin blockchain, leverages the latest upgrade of Taproot to achieve greater privacy and scalability, providing developers with the ability to issue, send, receive and discover assets on the Bitcoin blockchain. Core functions. Taproot Assets allows the creation and exchange of different assets such as stablecoins and other tokens on the Bitcoin blockchain. It interoperates with the Lightning network, with nodes providing atomic conversions of Bitcoin to Taproot assets. Taproot Assets also supports multi-signature and co-signature arrangements, allowing the creation of Taproot asset channels and BTC channels in the same UTXO.

Taproot Assets is similar to Bitcoin meta protocols such as Ordinals, BRC-20, Runes, Atomics, TAP, PIPE and RGB, but does not use Bitcoin as a complete data availability layer, users need to store their own data or through off-chain data storage ( called Universe). Currently, Taproot Assets v0.3.0 alpha version has been launched on the main network, but it still relies on the development of indexes such as third-party storage. Lowering the participation threshold requires the construction of infrastructure such as wallets and third-party indexers that support Taproot Assets.