Bitcoin developer Burak has unveiled Ark, a Layer 2 protocol designed to enable fast and secure transactions. According to a post on the Bitcoin dev mailing list, Ark offers users an alternative scaling approach that allows them to send and receive funds without liquidity constraints, making it easier for recipients to get paid without an onboarding setup. Unlike other Layer 2 solutions like Lightning, Ark does not require the opening and closing of channels, thus significantly reducing the on-chain footprint.
The protocol operates using virtual UTXOs (vTXOs), which are short-lived notes that expire after four weeks. When a payment is made, existing vTXOs are redeemed, and new ones are created. The anonymity of coin ownership is improved by restricting vTXO values to a range of sats values. Users can acquire vTXOs from others or use a process called lifting, which allows them to lift their on-chain UTXOs off the chain for virtual UTXOs.
To realize its goals, the protocol leverages an intermediary called the Ark Service Provider (ASP), which serves as a liquidity provider, CoinJoin coordinator, and Lightning service provider. ASPs create rapid, blinded CoinJoin sessions every five seconds, known as pools, ensuring the atomicity of payment schedules.
Ark’s integration with the Lightning Network allows users to attach HTLCs (or PTLCs) to a pool transaction, enabling interoperability between the two protocols. Multiple ASPs can be used to pay Lightning invoices from different vTXO sources using multi-part payments. Payments on Ark are credited every five seconds, allowing users to spend their zero-conf vTXOs immediately without waiting for on-chain confirmations.
The developer behind Ark has highlighted its potential for future extensions and improvements. A hypothetical data manipulation opcode could disincentivize double-spending, and users could forge an ASP’s signature to reclaim their vTXOs in case of a double-spend. Overall, Ark offers a promising solution for efficient and secure off-chain transactions on the Bitcoin network.
For more information about Ark and its technical details, visit https://arkpill.me/deep-dive.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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