Bayesian Labs: The platform over protocol

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Bayesian Labs recently announced their token platform fabriik where users can mint and trade tokens on Bitcoin SV. fabriik is still in closed beta, but users can sign up or can receive an invite from someone who already has access.

fabriik is the first Bitcoin SV-specific platform that provides an actual user interface to mint and send tokens. An easy to use site like this is sorely needed to get users and business experimenting.

Per their blog post, they “adapted the plumbing so (we) can focus on the real-world stuff.” One of the reasons BSV has lacked token is that all the existing solutions thus far require technical expertise to use. This high barrier to entry prevents more business-minded individuals from using the various tokens and bringing forward real-world use cases.

You can issue a token on BCH in like 7 clicks.

Meanwhile BSV in almost two years has nothing

— shua (@cryptoAcorns) August 12, 2020

With fabriik, BSV is one step closer to competing with other chains in this space. Bayesian’s approach of abstracting away the various protocols is refreshing. Moreover, they do not have to care about a token protocol ‘winner’ as they can listen for feedback from the market and implement what it asks for.

For now, fabriik has its own token implementation that is a hybrid of sCrypt Layer 1 tokens and the Tokenized protocol. The transactions allocate tokens via a UTXO, and an OP_RETURN output describing the details of the token.

fabriik supports paymail so that beta testers can send tokens to others easily. A secret code held offline by the user is required to spend the funds as a security measure. Per Bayesian, this will be a streamlined experience in the future.

While a UTXO-based solution is implemented, token state is validated by an off-chain agent. For now, this is how Bayesian addresses the ‘Back to Genesis’ issue that all token protocols face.

fabriik has built a proprietary wallet for the beta, a situation which must change for tokens to gain traction. Give the state of tokenization on BSV to date, no existing wallet supports any token at all. Not only will wallets have to provide a user interface, they must allow users to select inputs upon spending Bitcoin otherwise tokens can be accidentally spent.

I mean technically I think you can make those SLP tokens on BSV in a few clicks at https://t.co/SHNXz4f5Cp also. They are just an OP_RETURN construct (that you can accidentally delete by spending the associated Bitcoin incorrectly)

— Luke Rohenaz (@wildsatchmo) August 12, 2020

This was a concern of Elas Digital as well. The whole space may be further slowed if each token company must build their own wallet. A positive implication of the work fabriik has done is that it could start to put pressure on wallets to integrate tokens, as there will be a disproportionate advantage for the first wallet to do so. Furthermore, Bayesian intends to allow existing BSV and multi-asset wallets to connect to the fabriik platform, incentivizing more interoperability.

Overall, the perspective Bayesian is taking is welcomed as they seek to not necessarily compete with other platforms but to welcome them. If Bayesian succeeds in integrating different protocols, they can absorb the complexity that other companies would have to build, moving the entire space forward.

fabriik strives to be the “‘one-stop’ shop for tokenization”. A powerful network effect could emerge by bringing together the various low-level token developed on BSV thus far into one place on a ledger that can handle volume and keep fees low.

If only the current digital currency market was in desperate need for something like that…