Oddbean

Ark Labs launches today, a new company dedicated to building hashtag#bitcoin layer-two solutions based on the new Ark protocol. Transaction fees and delays caused by congestion on #bitcoin’s mainchain are increasing demand for more scalable payment solutions. Lightning has made significant strides, but UX challenges (like inbound liquidity management) are driving users toward custodial solutions. New approaches to scaling are needed to supplement the Lightning Network. This is where Ark comes in. Ark, proposed 2023, is a layer two protocol designed to offer speed and scalability without the burdens of liquidity management (for end users, at least!). Until now, Ark has been a theoretical solution to bitcoin’s scaling issues. But with the launch of Ark Labs, we’re making Ark a reality—we’ve released an open Ark implementation, which you can use to launch your own Ark Service Provider or wallet. We’ve already started work on the first Ark-based services. If you’d like to be one of the first to try these out at launch, make sure you subscribe to our newsletter on our website https://arklabs.to Ark uses a unique model for hashtag#bitcoin transactions—users connect to an Ark Service Provider (ASP) and transact with “virtual” transactions (VTXOs). Unlike Lightning, end users only need a light wallet and all on-chain liquidity management is handled by their ASP. Importantly, an Ark VTXO can be redeemed on the hashtag#bitcoin mainchain at any time, even if the ASP is offline. This ensures that users have true self-custody of their Ark funds. Onboarding is easier too—users don’t need any bitcoin to open a channel and receive their first payment. All that said, we need to emphasize that Ark is not a replacement for Lightning! Lightning is an essential piece of the scaling puzzle. It’s especially suited to enterprise settlements (e.g., exchanges, federations, and ASPs)—Ark simply fills in its gaps for consumer payments. Ark’s finally here and we’re excited to pioneer new possibilities with #bitcoin. Whether you're looking to integrate Ark into your app, shape the protocol’s development, or make some of the first Ark payments, get in touch! Full announcement https://blog.arklabs.to/introducing-ark-labs-a-new-venture-to-bring-seamless-and-scalable-payments-to-bitcoin-811388c0001b