The Simple Ledger Protocol (SLP) has become a popular project within the Bitcoin Cash ecosystem because it gives anyone the ability to issue and transfer tokens in a permissionless fashion. Since the project was announced last year, there’s been a myriad of tokens created on the BCH chain. A few SLP tokens have launched on exchanges and some of these tokens have gathered real value and utility. SLP developers have now revealed a new specification, which extends the SLP token type 1 protocol allowing for the creation of non-fungible tokens that can be grouped together using a single ID.
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The Simple Ledger Protocol and Tokenization Becomes a Mainstay Within the Bitcoin Cash Ecosystem
In the summer of 2018, it was well known that at some point in the near future the Bitcoin Cash blockchain would host a token creation protocol that allowed anyone to mint and transfer BCH-based tokens. During the month of July, at least four BCH token projects were revealed around the same timeframe. This was after the 32MB upgrade in the spring, which also re-enabled some old Satoshi opcodes and bumped the network’s default data-carrier-size to 220 bytes.
Out of all the token projects, the Simple Ledger Protocol jumped ahead of the pack, becoming a mainstay within the BCH ecosystem. The SLP system simply draws from the transaction chain of the existing Bitcoin Cash framework. The protocol essentially uses the metadata within an OP_RETURN transaction for the issuance and transfer of tokens.
“You can think of SLP as a ‘transaction within a transaction,” the project’s website explains. “SLP transactions live within a special output known as OP_RETURN, which is a
