Since last August, the Simple Ledger Protocol (SLP) has become a prevalent application within the Bitcoin Cash ecosystem. So far there’s been thousands of SLP tokens created, a number of which have been very popular and used regularly. Tokens have been issued by governments like Liberland, there’s a new SLP stablecoin backed by USD, a city-token being built for Dublin, Ohio and trading platforms like Coinex and Altilly have begun to list SLP-based tokens.
Also Read: SLP Developers Publish Specs for a Unique Type of Non-Fungible Tokens
Bitcoin Cash Tokenization Matures With the Simple Ledger Protocol
The token universe on the Bitcoin Cash blockchain is growing and since last year there’s been close to 2,700 tokens created using the Simple Ledger Protocol framework. All of the tokens created using the protocol can be queried using the SLP explorer called Simpleledger.info or a block explorer that supports the SLP type standard.
Bitcoin Cash proponents appreciate the SLP standard because the token system does not interfere with the BCH chain’s consensus rules. SLP tokens and their transactions have metadata attached to them, which is data that describes and gives information about the token’s properties. The SLP system ties the metadata to OP_Return transactions on issuance, and when tokens are sent and received.
“Because SLP builds on the transaction chain of the existing Bitcoin framework, users can easily verify transactions with SPV/lite wallets within practical boundaries,” the Simple Ledger Protocol whitepaper explains. “Full validation of a transaction back to its token genesis is possible by supplementing existing transaction-retrieval infrastructure with integration of SLP consensus rules.”
