Abstract. The LRC-20 standard embeds additional information into Bitcoin transactions by tweaking public keys in Bitcoin outputs, enabling a novel, compact, and efficient approach for tokenized assets to be issued and transferred on Bitcoin and Lightning. LRC-20 nodes communicate on a peer-to-peer layer in order to recognize and validate LRC-20 trans- actions. Due to the simplicity and standardization of the key-tweaking mechanism, LRC-20 tokens can be seamlessly ported onto the Lightning Network, delivering faster and cheaper LRC-20 transactions. LRC-20 transaction amounts can be blinded for additional privacy, and issuers can implement freezing capabilities if they choose to.
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