Simple Ledger Protocol (SLP)

Simple Ledger Protocol (SLP) Key Points

• Simple Ledger Protocol (SLP) is a protocol for creating tokens on the Bitcoin Cash (BCH) blockchain.
• It enables the issuance and management of digital assets or tokens, similar to the ERC-20 standard on the Ethereum blockchain.
• SLP was launched in 2018 and has facilitated the creation of thousands of individual tokens.
• The tokens created with SLP can be used in a multitude of ways, including as digital collectibles, in-game assets, and tokenized financial instruments.

Simple Ledger Protocol (SLP) Definition

Simple Ledger Protocol (SLP) is a method for creating tokens, akin to digital assets, on the Bitcoin Cash blockchain. It is an open-source protocol that enables any individual or organization to issue, transfer, and manage their own tokens on the BCH network.

What is Simple Ledger Protocol (SLP)?

SLP is essentially a protocol for token creation on the Bitcoin Cash blockchain. It brings functionality similar to the ERC-20 standard on Ethereum, but to the BCH network. This means that it allows for the creation of various types of tokens, including utility tokens, security tokens, digital collectibles, and in-game assets.

This is achieved without the need for smart contracts, which differentiates it from similar protocols on other blockchains. Instead, SLP operates through ‘OP_RETURN’ transactions, which are a type of transaction output in the Bitcoin protocol that can hold small amounts of data.

Who Created Simple Ledger Protocol (SLP)?

SLP was created by a group of developers within the Bitcoin Cash community, including JT Freeman, James Cramer, Jonald Fyookball, and Unwriter. It was launched in August 2018 with the aim of bringing additional functionality to the BCH network and expanding its use cases.

When was Simple Ledger Protocol (SLP) Created?

The Simple Ledger Protocol was launched in August 2018. Since its inception, it has facilitated the creation of thousands of individual tokens on the Bitcoin Cash blockchain.

Where is Simple Ledger Protocol (SLP) Used?

SLP is primarily used on the Bitcoin Cash blockchain. It allows users to create and manage their own tokens directly on the BCH network. The tokens created with SLP can be used in a variety of applications, including digital collectibles, in-game assets, and tokenized financial instruments.

Why is Simple Ledger Protocol (SLP) Important?

SLP is important because it brings additional functionality to the Bitcoin Cash network, allowing it to compete with other blockchains that offer token creation capabilities, such as Ethereum. By enabling the issuance and management of digital assets, it expands the potential use cases for BCH and allows for greater innovation within the network.

How Does Simple Ledger Protocol (SLP) Work?

SLP operates through ‘OP_RETURN’ transactions on the Bitcoin Cash network. These are a type of transaction output that can hold small amounts of data. When a user wants to create a token, they issue an ‘OP_RETURN’ transaction with the necessary information (such as the token’s name, supply, and so forth). This transaction is then broadcast to the network, and if it is valid, it is included in the blockchain, effectively creating the token.

These tokens can then be transferred and managed in the same way as BCH, with each transaction being recorded on the blockchain.