Due to the near identical code base between Bitcoin and Litecoin, upgrades and proposals on Bitcoin can be implemented on Litecoin, and visa versa.
Many overlook this significance, essentially all of the Bitcoin developers are Litecoin developers and all of the Litecoin developers are Bitcoin developers.
Taro is a Taproot Asset Representation Overlay which allows the issuance of normal and also collectible assets on the main Bitcoin chain. Taro uses the Taproot script tree to commit extra asset structured meta data, enabling things like easily verifiable asset supply proofs and also efficient proofs of non existence.
Taro asset transfers are then embedded in a virtual/overlay transaction graph which uses a chain of asset witnesses to provably track the transfer of assets across taproot outputs. Taro also has a scripting system, which allows for programmatic unlocking/transfer of assets.
The Taro design also supports integration with the Lightning Network
(BOLTs) which allows for multi-hop transfers of Taro assets. Rather than modify the
internal network, the protocol proposes to instead only recognize "assets at the
edges", which means that only the sender+receiver actually need to know about and
validate the assets. This deployment route means that we don't need to
build up an entirely new network and liquidity for each asset. Instead, all asset
transfers will utilize the Bitcoin backbone of the Lightning Network.
The question is when will Litecoin developers create Tarolite and utilize the existing Litecoin Lightning Network?