Another solution to realize the function of issuing tokens, BCH platform Token is about to usher in a big outbreak
Some time ago, a variety of smart contract schemes were proposed in the BCH community, such as Wormhole, Bitprim’s Keoken, cryptonize.it launched the color coin protocol, The other was created by Jonald Fyookball (Electron Cash wallet developer, ChainBet protocol writer), James Cramer, Unwriter (Bitdb.Net Work developer), Mark B. Lundeberg, Calin Culianu, Ryan X. Charles (Yours.org CEO) Simple Ledger Protocol (SLP) by six developers. With the launch of Wormhole and Cryptonize.it, color coin protocols have realized the function of issuing tokens one after another, and SLP has been followed by issuing tokens.
Compared to other smart contract solutions, SLP is simpler and more pure. For other smart contracts, issuing tokens is just one of their many functions, but SLP schemes are made for issuing tokens. The basic principle of SLP is relatively simple. It is to write the information of Token issuance and transfer into OP_RETURN and carry it in BCH transfer to realize Token transfer between different addresses. Unlike other schemes, SLP has no native Token, runs directly on BCH, and is currently the first and only SPV-friendly bitcoin Cash smart contract scheme.
In addition, although wormholes, Keoken, and SLP all reuse BCH addresses. The difference is that both Wormholes and Keoken are account-based, similar to Ethereum. SLP uses the same UTXO method as Bitcoin to record Token balances. Moreover, SPL uses a new address format, SLP Addr. The new address format does not change the consensus, and only requires the support of wallet, exchange and other infrastructure. In addition, you can transfer a Token to an old address using the address translation tool. This avoids the problem that if you transfer an SLP-enabled Token to a non-SLP-enabled wallet, the recipient may mistakenly transfer the Token when transferring the BCH.
How to issue tokens using SLP scheme?
The SLP scheme has now been integrated into the Electron Cash wallet. Start by downloading the SLP-enabled Electron Cash SLP wallet. Then trands transfer is carried out according to SLP protocol specifications. Trands transfer is equivalent to the issuance of tokens, carrying the Token’s abbreviation, full name, quantity, decimal number and other key parameters. These transfers represent the issuance of a certain number of tokens to the target address. The txID of the transfer is the unique number of the Token, called the Token ID. The Trands transfer also has a parameter called BATON Vout. This parameter indicates that the Token can be issued. Otherwise, the number of tokens is fixed and the Token cannot be issued. The BATON Vout parameter indicates which outputs in the Trands transfer can be used as input for additional transfer. After the Token is created, it can transfer its Token to other users through the wallet just like other assets. The main parameters carried in this process are Token ID and the number of tokens given to each output. Since the balance is UTXO, all the tokens in the input will be spent, some of them will be forwarded to others, and the rest will be forwarded to your change address.
So far, in less than a day, according to the SLP browser, there have been 79 trands transfer Token IDS through THE SLP scheme, which means that 79 tokens have been created.
At present, bCH-based smart contract schemes have successively realized the function of issuing tokens, and these schemes have their own characteristics and are not the same. There will be many options for users to choose the best solution for them to create tokens on the BCH platform. This is completely in line with the path of innovation and freedom that BCH insists on, which is to improve users’ experience from the perspective of users. Tokens on BCH will also see a new explosion driven by the continuous development of these smart contract schemes. This is also a good thing for BCH itself, which will enrich the ecology of BCH, improve the utilization rate of BCH, and lay the power for the following development.