STAS tokens on the BSV blockchain may become more widely used as the protocol is now under an MIT License. This means any developer can use the technology to create tokens based on permissionless smart contracts for their project, and any user can mint the tokens without paying a license fee.
Like 1Sat Ordinals, STAS tokens use Bitcoin Script to apply token metadata directly to a BSV “satoshi” unit. With STAS (Substantiated Tokens from Actualized Satoshis), that data gets embedded directly into the UTXO. In other words, all metadata related to the token and its current owner is written directly onto the blockchain. The data is not lost even if a tokenized satoshi is mistakenly sent to a wallet that doesn’t support STAS contracts.
Although different token protocols and token management systems have existed over time, the user ecosystem has developed a preference for systems that are non-proprietary, lightweight, and as open as possible for others to use. One of STAS’s main selling points is that tokens will retain their data (and thus validity) even if the issuer goes out of business or no longer exists at some future point.
Projects using STAS within the BSV ecosystem include Centi, Relysia, Gate2Chain, GAP600 and Codugh. The protocol was developed originally by TAAL and released in 2021.
Along with non-fungible tokens (NFTs) and fungible tokens, STAS can be used for other tokenized assets like stablecoins or even central bank digital currencies (CBDCs). Centi uses the STAS-20 token standard for its Swiss Franc stablecoin CCHF.
What’s the benefit of an MIT License?
The MIT License for software places fewer restrictions on use compared to the GNU General Public License (GPL). While the GPL demands projects must be open source, the MIT License doesn’t—the only requirement is to include an original copyright notice and a copy of the (MIT) license itself in any software distribution.
Once satisfied, “Anyone can use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the software, free of charge.” It also means the licensed software is provided “as-is,” which absolves its authors or copyright holders from any liability resulting from subsequent use or misuse.
The first release of the Bitcoin protocol and software in 2009 was also under the MIT License, with the copyright credited to Satoshi Nakamoto. The ability to examine and copy the code helped popularize Bitcoin in the early days. It also led directly or indirectly to the thousands of “altcoins” and other blockchains we see today.
STAS’s method isn’t without its critics. Some say the UTXO data accumulation over time can become a burden, while others say this isn’t a problem and provides additional benefits, e.g., there’s no need for server-side indexing or Layer 2 solutions to prove a token’s validity.
Ultimately, it depends on the specific use case and the attributes a developer finds most useful for different tokens. STAS tokens are designed to be versatile, and now the free MIT License covers the protocol’s use, it’s likely to start appearing in a wider variety of projects.
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