Guide to the world of Bitcoin Cash SLP tokens
Blockchain

Guide to the world of Bitcoin Cash SLP tokens

By Alfredo de Candia - 4 Aug 2019

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It’s almost been a year since SLP (Simple Ledger Protocol) became the prevailing standard of the Bitcoin Cash (BCH) ecosystem for the development of tokens based on this blockchain. For example, the first dollar-anchored stablecoin, HonestCoin (USDH), uses precisely SLP.

At the moment there are already more than 2700 tokens that have been created using the Simple Ledger Protocol framework, as can be seen through the relevant simpleledger.info explorer or through a block explorer that supports the SLP standard.

This SLP protocol is well suited to token creation and, instead of using the Ethereum blockchain, uses the Bitcoin Cash blockchain.

“Simple Ledger Protocol (SLP) uses the meta data in OP_RETURN for the issuance and transfer of tokens in conjunction with standard transaction outputs that each represent a number of token units specified by the sender. Consensus on the interpretation of the OP_RETURN outputs is achieved by token users and market participants adhering to a prescribed set of simple rules”, can be read in the whitepaper of the project.

“Because SLP builds on the transaction chain of the existing Bitcoin framework, users can easily verify transactions with SPV/light wallets within practical boundaries. Full validation of a transaction back to its token genesis is possible by supplementing existing transaction-retrieval infrastructure with integration of SLP consensus rules.”

A guide to the most important projects that use SLP

Last week, a new SLP-based utility token was created for dividend payments, as announced by the cashgames.bitcoin.com project, a gaming platform that uses only Bitcoin Cash (BCH) as a payment method, as stated by Roger Ver himself:

“Bitcoin Cash has enabled all sorts of amazing things. One of them is the ability to pay dividends in BCH directly on the block chain to the addresses holding a specific token type. This essentially turns SLP tokens into bearer shares that are able to collect dividends! I don’t think people appreciate how awesome this is yet, so I wanted to help get things started.”

Another interesting project is the 1 to 1 pegged bitcoin (BTC) token created by Core Cash (BTC2) and launched by the sideshift.ai platform. The creator of the platform, Andreas Brekken, explained:

“Sideshift.ai is to BTC2 what the firm Tether is to USDT. At the time of publication, BTC2 has a market capitalization of around $957,000 with 100 BTC2 tokens in circulation.”

Obviously, to manage these SLP tokens there is also a need for a dedicated wallet, in which case there are alternatives, as 4 different wallets are already available and ready to use: Ifwallet, Crescent Cash, Badger and Electron Cash, proving that several operators are already interested in supporting this new standard of tokens.

In addition, just a few days ago it became clear that two SLP developers, Jonald Fyookball and James Cramer, have created a sort of non-fungible token called NFT1, opening possibilities for the world of collectables.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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