Colu, an Israel-based blockchain startup, has announced its cooperation with Lightning Labs and leveraging Lightning as a solution for off-chain Colored Coins transactions.

Colored Coins was one of the first technologies that provided developers with tools to create blockchain based digital assets for their applications. The firm launched Colored Coins protocol before, that saw numerous building applications on the protocol.

“Our platform has evolved into one of the biggest blockchain sandboxes in the world with our API being used by developers from over 100 countries,” Mark Smargon, co-founder & VP blockchain at Colu stated in a blog post.

The move for Colored Coins and Lightning integration rouse as a solution to curb drawbacks on the Colored Coin protocol like paying miners a transaction fee to verify each transaction, result in high fees, slow verification times, considerable blockchain bloat, among others.

Colu has built a version of Lightning Labs’s code that is compatible with Colored Coins. The version uses Lightning technology transfer digital assets in payment channels. It also uses the bitcoin blockchain as a settlement layer and a dispute resolution mechanism that secures the assets.

The integration allows P2P transfer of digital assets with effectively no verification time and high TPS. Above all, it has almost no fees mostly for opening and closing payment channels.

“We are also looking to take this technology a step forward and show the community how it will really work. To accomplish this, we will be releasing a demo for asset issuance and transfer using Colored coins and Lightning,” he added.