Greetings! Could you elaborate on how digital collectibles, branded loyalty tokens backed by Bitcoin, are created and maintained?
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Definitely! Our protocol of choice for these use cases is Taproot Assets which essentially allow for adding arbitrary asset metadata to UTXOs for users to mint and transfer these assets. A lot of the data is stored off-chain (which is a big positive vs. something like Ordinals) in something called Universes which enable users to query information about different assets. It uses Bitcoin for double spend protection, and some of the pieces we got with the Taproot upgrade help enforce supply caps of these different assets as well. You can read more at Lightning Labs' website here: https://docs.lightning.engineering/the-lightning-network/taproot-assets
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