Ark Labs introduces a new layer-two scaling protocol, complementing existing networks like Lightning and Liquid.
Ark Labs has announced the launch of a new open-source protocol aimed at improving transaction efficiency on the Bitcoin network. Ark Labs is set to maintain and promote the protocol, providing a foundation for developers to create Ark Service Providers (ASPs) and compatible wallets.
"Today, we’re proud to unveil Ark Labs, a new company dedicated to building bitcoin layer-two solutions based on the new Ark protocol," Ark Labs stated in a recent blog post.
Today we’re launching Ark Labs, a new company dedicated to building solutions for the Ark protocol, a new #bitcoin layer two that makes bitcoin payments at scale simpler and with no sacrifices to self-custody.https://t.co/kb7JUHCU2x
— Ark Labs (@ArkLabsHQ) June 4, 2024
The Ark protocol, which was proposed in May 2023, has now transitioned from theory to a tangible product with the establishment of Ark Labs. The company has made the working implementation available on GitHub, signaling their readiness to support developers and enterprises in adopting the new system.
Ark Labs has outlined a dual mission: maintaining an open implementation of the Ark protocol and building services that utilize it. "Our team is dedicated to developing and maintaining an open-source implementation of the Ark protocol (GitHub)," they revealed, also hinting at a developer grant program to encourage contributions to the project.
In an interview with Bitcoin Magazine, Marco Argentieri, CEO of Ark Labs, expressed optimism about the protocol's potential, emphasizing that "Ark is ready to enter the next stage of its development." Ark's design facilitates low-cost off-chain transfers, and Argentieri sees it as complementary to existing solutions like the Lightning Network and sidechain protocols like Liquid.
Despite previous delays related to discussions on covenants and soft fork improvements, Argentieri believes that there are already viable commercial use cases for the technology. Ark Labs is working on versions of the protocol for both Bitcoin and the Liquid Network, with plans to launch applications or products later in 2024.
The Ark protocol stands out by offering frictionless onboarding, eliminating concerns about inbound liquidity, and allowing for offline receipt of transactions. However, it does shift the responsibility for liquidity management to the ASPs, who are motivated by transaction fees to take on this role.
Ark Labs clarifies that their protocol is not intended to replace the Lightning Network but rather to complement it, envisioning Lightning's future as a settlement layer for larger entities, while Ark could be favored for consumer payments and remittances.
