Announcing Taro: A New Protocol for Multi-Asset Bitcoin and Lightning 🍠💱🌍
https://ift.tt/XIqRAJ3
Quoting article:
>How does a Taro transfer over Lightning work?
>
>Imagine Alice and Bob have a Lightning-USD (L-USD) channel with $100 of capacity, balanced such that they both have $50 worth of inbound liquidity, and Carol and Dave have a L-USD channel with $100 of capacity, balanced such that they both have $50 worth of inbound liquidity.
ALICE –$10 L-USD–> BOB –21.5k sats–> CAROL –$10 L-USD–> DAVE
>If Bob only has a BTC channel with Carol, Alice can still send $10 of L-USD to Bob, who charges a small routing fee in BTC and forwards $10 of BTC to Carol, who charges a small routing fee in L-USD and forwards $10 of L-USD to Dave, the final destination. Taro interoperates with the existing BTC-only Lightning Network as-is, only requiring the first hop and the second-to-last hop to have L-USD liquidity.
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How this works related to the number of BTC that BOB and CAROL hold?
Is BOB selling his bitcoins to ALICE (in order to get the $10 L-USD) and carol buying more bitcoins from DAVE (in order to give the $10-LSD)?
If not, how the conversion of L-USD to BTC works in this regard? Also who fixes the price of the conversion? Do they need an oracle?
Cryptocurrency
