SLP: simple ledger protocol is the first token system that lives on the Bitcoin Cash blockchain. It was launched in 2018 with the goal of creating a simple and easy to use token-system. The creators of SLP found that most attempts in creating new tokens had been overly complicated, hence they developed Simple Ledger Protocol.
SLP is one of the fastest, most liberating and simplest token systems currently in the market. Its beauty lies in its ease of use as well as it’ simplicity, making it a robust system for developers to build on.
To understand, why SLP tokens are attractive for developers as well as users, we will quickly introduce the most important features.
First and foremost, SLP transactions take place on top of the Bitcoin Cash blockchain. One way to imagine an SLP transaction is as a “transaction within a transaction”. SLP transactions use the metadata of the OP_Return function in normal Bitcoin Cash Transactions.
Sounds complicated? If you imagine a BitcoinCash transaction as a person walking with a shopping bag full of groceries towards home (the recipient), then the shopping bag is the meta-data of the OPT_return function and the groceries are the SLP tokens. For a more technical explanation, check out the protocol specifications on github.
One major benefit of this structure is that SLP transactions are fast and cheap. Anyone can transact SLP tokens at the fraction of a penny.
With simplicity comes robustness, making SLP a very secure system. Furthermore, it is open-source allowing anyone to use the code for their own projects. Another huge advantage of SLP is that “because SLP builds on the transaction chain of the existing Bitcoin framework, users can easily verify transactions with SPV/lite wallets within practical boundaries” — meaning that there is no need for users to run a full node.
Since inception in August last year, more than 4900 tokens have been created on SLP and the number is growing.
One very interesting use-case to-date has been the ability to enable token issuers to pay dividends to any BCH address that is holding a certain type of SLP token. Other token projects have created SLP tokens to incentivise their traders (CoinFLEX), tip users on Social Media (SPICE) or simply to prove that also Non-Fungible Tokens can be created on SLP (Bitcoin Cash SLP Torch Token).
SLP comes with all the tools needed to keep track of a token-system: A blockexplorer (simpleledger.info), a wallet browser extension (badger) and a wallet for creation of new tokens (Electron Cash).
If you want to learn more about exciting opportunities of SLP, check this out!
At Bitcoin.com Exchange we are excited to announce that we will soon list our first SLP Token, so stay tuned! 🎉