Simple LEDGER is an overlay of the bitcoin cash protocol that allows transferring tokens on bitcoin cash blockchain (why doesn't slp-usdt exist ?). But, how does it run, and what are benefits/risks ?
How does it run ?
When we send (or mint) slp tokens, we will create a transaction that contains token data. Then, this utxo is treated by a bch smart-contract (bitcoin-based chains allow smart contracts, but there are less evolved than ethereum-based).
Because of slp was intented to be usable with spv wallets (that only pull txns involving their address), there's also one output to target address (546 bch satoshis).
You didn't understand ? Maybe this schema will make it easier :
Maybe you're asked yourself why did I take a slp input and no slp output. It is because of op_return says which output is slp and which isn't. If we dismiss the op_return, outputs are the same.
Benefits
This technology gives some benefits compared to other tokens. I choosed sorting them (a bit).
No nonce problem
A problem with ethereum-based blockchains is that a single account cannot send 2 txns in the same block, and that network first executes txns with lowest nonce. It also gives another problem : txn with nonce #9 cannot get confirmed before txn with nonce #8 gets, and also txn #10... (see my article about ethereum voc.)
With utxo-based blockchains, txns can be executed regardless on priority, so we can send as much as we want without any problem.
Multi-send
Did you already try sending ether to 2 addresses within the same txns (without using smart contract) ?
If you say you did, you lied because of it is impossible. With utxos, it's perfectly possible and already widely used (batching).
So if you want to send any erc20 (will take dai, perfectly randomly) to 10 addresses, we will have to send 10 transactions, but if you want to send a slp token to 10 addresses, we will take one tx with 10 outputs, so it's a gain of time.
Risks
Each useful thing involves risks, and slp doesn't dismiss this rule. So let's see them.
Token Burn
Within the explanation, I said that all slp data were in op_return, and that outputs were normal outputs. Imagine that you spend the utxo with a wallet that doesn't handle slp : it will spend the output as a normal (bch) output, and you will lose your tokens.
This risk is already "used" by electron cash (an electrum-like bch wallet), that comes with a burn tool :
note : I use a slp-compatible variant, and slp aren't handled in main release
That's all
I think that I said all I wanted to say, and I hope that my article was useful.
If it was, please give a tip and a like (thanks to all my tippers/likers)
And if you see anything to improve, feel free of saying it in the comments
