Author: Burak Keceli 2023-05-22 07:54:03
Published on: 2023-05-22T07:54:03+00:00
A new second-layer protocol design called Ark has been released, which is an alternative approach to the Lightning network. Ark enables users to send and receive funds without introducing liquidity constraints. The protocol consumes significantly less on-chain footprint than Lightning as there is no concept of opening and closing channels. Instead, it uses virtual UTXOs (vTXOs) that live off-chain and must be spent within four weeks of being received. When a payment is made on the protocol, existing vTXOs are redeemed and new ones are created. To improve anonymity, vTXO values are restricted to a set range of sats. Users can acquire vTXOs from someone who already owns them, or use a process called lifting, which allows users to lift their on-chain UTXOs off the chain for a 1:1 virtual UTXO. Ark's anonymous, off-chain payments are enabled through an untrusted intermediary called the Ark Service Provider (ASP). ASPs provide liquidity to the network and charge liquidity fees, similar to how Lightning service providers work. ASPs create rapid, blinded coinjoin sessions every five seconds known as pools. A user joins a pool session to make a payment by registering their vTXOs to spend and vTXOs for intended recipients. Ark can interoperate with Lightning by attaching HTLCs and PTLCs to a pool transaction, just like ATLCs and connectors. Payments are credited every five seconds but settled every ten minutes. Payments are credited immediately because users don’t have to wait for on-chain confirmations to spend their zero-conf vTXOs further. You can find more information about Ark at https://arkpill.me/deep-dive.
Updated on: 2023-06-16T18:34:13.429819+00:00