🔥🔥🔥 #bitcoin #Layer2 #Ark Protocol's Team Forms New Firm as Lightning Network Competitor
Ark Labs: Revolutionizing Bitcoin Payments with Scalable, Low-Cost Solutions
- Ark Labs aims to enhance Bitcoin payments by addressing the limitations of the Lightning Network. Founded by Burak Keceli, the team behind the Bitcoin layer-2 protocol Ark is developing a faster, cheaper payment system on the Bitcoin blockchain. Despite Keceli's departure, Ark Labs continues to advance his vision, focusing on overcoming the "inbound liquidity" problem of the Lightning Network.
Building on Lightning's Foundation
- Ark Labs seeks to offer an alternative to the Lightning Network by developing an open implementation of the Ark Protocol and introducing user-centric services. The firm's primary goal is to create a more efficient payment system by leveraging service providers who offer 24-hour liquidity services for a fee, thus eliminating the need for users to commit funds upfront.
Addressing the Inbound Liquidity Problem
- Keceli highlighted the inbound liquidity issue in the Lightning Network, where users need funds to receive payments, as a significant drawback. Ark aims to solve this by facilitating off-chain payments without requiring users to lock up funds.
How Ark Works
- Ark employs an innovative unspent transaction output (UTXO) model, using virtual unspent transaction outputs (VTXOs) for unidirectional, one-time-only payments. This approach simplifies the payment process, making it more efficient and practical.
Conclusion
Ark Labs is set to revolutionize Bitcoin payments by addressing key issues in the Lightning Network, offering a scalable, low-cost alternative focused on open implementation and user-friendly services.
Source - coindesk.com
