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Upcoming Sidechain Project Tari to Build a Decentralized Assets Protocol on Monero

Upcoming Sidechain Project Tari to Build a Decentralized Assets Protocol on Monero

Reading Time: 3 minutes by on May 24, 2018 Altcoins, Blockchain, News, Tech
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Building on the work he’s done with Monero (XMR) in the past, core team developer Riccardo “Fluffy Pony” Spagni is primed to launch a decentralized assets framework on the privacy-centric protocol, along with Naveen Jain and Dan Teree. The move is compared to Bitcoin’s colored coins project of 2012, and in more recent times, the Ethereum protocol.  

Platform to Allow Resale of Digital Assets

Called Tari, the project’s core function is to enable users to “tokenize” their data/digital commodity, such as air-miles or concert tickets, and be able to trade it without the need of a central third party. Additionally, the tokenization would feature in-built contracts, which serve to limit the flexibility of the asset, in a bit to prevent excessively priced goods.

The platform would provide all the required tools to a user, “empowering anyone to issue, manage, use and transfer their digital assets” according to a May 19 blog post.

Deploying Advanced Features

The protocol will feature its native token while operating as a “merge-mined sidechain.” Spagni was quick to state that his project will be more scalable than others, due to its decision to drop an embedded consensus mechanism, and expressed his confidence that the Tari sidechain will be more successful than the sidechain projects implemented on top of Bitcoin:

“Merge-mined sidechains on Bitcoin have largely been limited to things like Namecoin and Dogecoin, which aren’t exactly additional use-cases (except Namecoin, really). I think this is far more interesting, and far more complimentary to Monero, than any merge-mined sidechains have been to Bitcoin.”

Additionally, Tari would support atomic swaps between Monero and itself – a feature that helps trust a third-party for cross-chain transactions.

Tari would be entirely open-source, with Spagni making it clear that much of the work he’s done with Monero will be used for Tari, including reusing a lot of the design and security features.

Spagni acknowledged the initial centralization of the project and added:

“It is a layer 2 project that can afford to experiment a little without impacting on the purity of Monero’s robustness and decentralization.”

The centralization is unlike a corporate entity, instead of being similar to that of the Ethereum Foundation, which simply acts as a steward of Ethereum and oversees the network, without coming in the way of network functioning.

Tari Labs would be based out of Johannesburg, the second-largest city of South Africa, and Oakland, California, and is in the process of hiring developers, code researchers, and security experts.

However, Spagni adds that Monero developers shouldn’t apply for the available positions, as the project already faces a “limited developer resources” and shifting focus to Tari could “drain” talent.

Funded Entirely by External Investors

Tari’s founder’s consists of Spagni, ticketing industry veteran Dan Teree, and digital marketing expert Naveen Jain, and they pointed out that the project would not feature an ICO, and is funded by top venture capital firms, such as Canaan Partners, Aspect Ventures, Trinity Ventures, and Redpoint.

Tari Founders Spagni, Jain, and Teree. Source: Fortune

Clearing concerns about the future of Monero after this move, Spagni addressed the Monero community on Reddit, and dispelled all doubts:

“Our investors believe in what we want to build with Tari, but they also believe in Monero as the world’s leading private digital currency, and also as a powerful base layer upon which projects can be built.”

The invested funds would be used in tandem for Tari and Monero, to enhance the ecosystem and software stack of the latter. Furthermore, Tari’s developer team will work closely with Monero’s, focusing specifically on cross-chain transactions, and a Lightning Network router implementation.

In conclusion, Spagni added that the research team at Monero Research Lab is in full-swing to improve the protocol’s transactional speeds and block propagation, and his departure would not impede the project’s progress.

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