Tokenizing assets on Bitcoin sidechain

Leo Zhang

By Leo Zhang

Blockstream just announced a feature that allows tokenized assets issuance on a Bitcoin sidechain. According to the release, the Issued Assets allows users to:

  • Issue a new asset in any quantity
  • Send a single transaction with several assets
  • Transact privately using Confidential Transactions, with amounts and asset type known only to the parties of the transaction
  • Destroy quantities of an asset

Tokenized securities have generated quite a bit of interests among traditional investors observing the cryptocurrency space. While Wall Street sees this as a gateway to introduce more digitalization to traditional securities, some Bitcoiners regard it as a distraction from the original goal of creating a peer-to-peer financial system. Do tokenized assets on a Bitcoin sidechain represent the best of the both worlds? Or a compromise to attract more "institutional interests"?

Blockstream announces product that lets users issue assets on sidechain

Commentary on why using a sidechain may work better than Color Coin

Mechanism of securing the sidechain

Reddit discussion thread

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