Bitcoin News: Ark Labs Launches Arkade, a New Bitcoin Layer 2

Ark Labs introduces Arkade, a Bitcoin Layer 2 solution. It allows off-chain scaling while maintaining user custody without using risky bridges.

After two years of intensive development, Ark Labs has finally launched Arkade. This new solution is now available publicly in public beta testing. It is an attempt to make Bitcoin tion. This enables users to return successful and scalable programmable money. This second layer, which is the most advanced one, is dubbed the Lightning Network layer since it was started several years ago. Therefore, it can permanently herald the demise of risky cross-chain bridges and wrapped assets.

New VTXO Model Solves Scalability and Custody Challenge

With this, users can now move and trade Bitcoin off-chain without any friction. They maintain full control and ownership of their funds during the entire process. Moreover, each Virtual Transaction Output (VTXO) is associated with a presigned Bitcoin transaction to the base layer instantly if required.

The Arkade model allows thousands of off-chain transactions. They are handled collectively efficiently and periodically settled on-chain. In addition, all off-chain activity is effectively coordinated between ASPs. Importantly, these ASPs never gain access to any user assets securely.

These many transactions are batch processed into a single settlement by ASPs. This makes transaction fees significantly lower and overall network scalability higher. By contrast, this mechanism avoids the custodial risks or wrap token risks altogether. Thus, Arkade runs only within the security boundaries of Bitcoin.

Marco Argentieri, CEO of Ark Labs, called the release of the software very significant. This is what he called the ultimate genesis of Bitcoin as programmable money. Moreover, Argentieri validates that user custody and exit guarantee is maintained well by the protocol. This is critical for network integrity and trust.

As such, other blockchains have retained the spotlight of financial innovation. Lending protocols and exchanges were first developed in other places. This is why Bitcoin was not equipped with the proper infrastructure for these complex tools, according to Ark Labs. Therefore, Arkade is well-positioned now to transform that landscape permanently.

Arkade Enables Lending, Trading, and Complex Financial Apps on Bitcoin

Arkade also brings several new features for all developers right away. It extends the functionality of Bitcoin beyond just making payment transfers. For example, it will handle complicated financial operations properly. This includes new lending platforms and trading exchanges easily.

Furthermore, the system is immediately meant for high interoperability. Therefore, it can operate effectively with the existing Lightning Network protocols. In addition, Ark Labs also introduced Arkade Assets for several asset classes. This also includes planned support for highly popular stablecoins such as Tether (USDT) in the near future.

The public beta’s initial launch partners are important on the whole. Some of them are major wallet providers like Breez and BlueWallet. Moreover, BullBitcoin and BTCPayServer are also actively engaged in it. In this way, it offers wide early adoption support of the new Layer 2 in a short time.

Open SDKs are actively provided for integration to developer teams. These robust toolkits are now available in TypeScript, Golang, and Rust. Thus, developers can develop different applications easily and rapidly. This makes it easy to integrate completely into their current technology stacks.

The protocol can be used to write powerful code on the first cryptocurrency. This is accomplished without modifying the underlying base layer in any way. Ultimately, this new architecture offers a secure and scalable future for Bitcoin DeFi. The public beta testing is now available, and everyone is encouraged to participate in the ecosystem.

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