In response to the growing demand for scalable and cost-effective Bitcoin payments, the team behind Bitcoin Layer 2 protocol Ark has formed a new company called Ark Labs. This innovative company aims to develop a faster and more efficient payment system on the Bitcoin blockchain, providing a powerful alternative to the Lightning Network.
Ark Labs, led by creator Burak Keceli, seeks to build on the foundation established by Lightning Network and address the limitations of existing solutions. Ark Labs’ primary focus is to provide scalable and affordable Bitcoin payments to meet the needs of users around the world.
Ark Labs’ core goals include developing open implementations of the Ark protocol and creating user-friendly services. The company plans to launch its first service later this year, with the goal of bringing innovation to the Bitcoin payments environment.
Unlike the Lightning Network, which faces challenges such as the “inbound liquidity” issue, the Ark protocol offers a new approach to off-chain payments. Ark utilizes service providers that provide 24-hour liquidity services for a fee, eliminating the need for users to deposit funds upfront to secure liquidity.
Ark’s off-chain payments utilize a unique Unspent Transaction Output (UTXO) model and use virtual Unspent Transaction Output (VTXO) to facilitate smooth and secure transactions. This model improves the efficiency and usability of Bitcoin payments by enabling one-way, one-time payments.
While Keceli transitions to other endeavors, the protocol and Ark Labs remain committed to achieving their goal of improving the Bitcoin payments infrastructure. With its innovative approach and ambitious goals, Ark Labs is emerging as a strong contender in the Bitcoin payments space, poised to reshape the future of digital transactions.
Featured Image: Freepik
Please see disclaimer