Have you ever found yourself waiting for an extended period of time to receive a Bitcoin transaction, or been forced to pay a higher fee to a miner to get your transfer included in a block? If so, you're not alone. The Bitcoin network is increasingly experiencing such delays and issues. While the Lightning Network provides an alternative, it's not without its flaws. That's why Ark Labs has announced that it's working on a new solution that will make Bitcoin transactions faster and cheaper.
On June 4, Ark Labs announced the start of work on a new layer 2 blockchain network that will operate on top of the Bitcoin protocol. The goal is to enable users to make simpler and more self-sovereign transactions, which will be much easier to execute than with the Lightning Network.
The new network is set to revolutionize the Bitcoin ecosystem, with Ark Labs emerging as a new player in the blockchain industry. According to the company's executives, the Lightning Network has several flaws that make it less than ideal for payment processing. Therefore, they have decided to create a successor to L2 that will operate without the need for managing payment channels and liquidity.
The new network will operate on the Ark protocol, which is heavily inspired by the Lightning Network but will eliminate the need for complex transfer management and liquidity. There will be no need for dedicated nodes or configuration to use the L2 solution.
All you'll need is a "light wallet" on your smartphone to receive or make a Bitcoin payment.
The Ark protocol will include a special network of service providers (ASPs) that will connect users with compatible Ark wallets to facilitate transactions. The ASP will act as a trusted server that allows users to make "virtual transactions" between each other, with funds still being transferred over the Lightning Network.
The ASP will operate on the basis of a trusted server that allows users to make virtual transactions between each other, with funds still being transferred over the Lightning Network. The creator's assurance is that users will have full control over their funds, even if their ASP goes offline.
When can we expect the new network to launch? As announced, it's expected to happen in 2024.
This new development is expected to bring significant changes to the Bitcoin ecosystem, providing users with faster and more affordable transactions. With Ark Labs' new network, users will have greater control over their funds and be able to make transactions without the need for complex payment channels and liquidity management.
