After the launch a year ago, the layer-2 Ark moves to the next phase: development continues carried forward by the new company Ark Labs.
The new company Ark Labs has announced its commitment to developing the layer-2 protocol called Ark. The protocol is designed to address the demand for scalable and affordable payment solutions for Bitcoin.
One of Ark’s goals is to solve the known problem of “inbound liquidity” in the Lightning Network. To receive payments, a LN node needs to have open channels with other nodes that have available funds on the inbound side of the channel. Without inbound liquidity, a node cannot receive transactions. When new channels are opened, all liquidity initially resides on the outbound side of the node that opens the channel, allowing only for sending funds. Inbound liquidity must be acquired later, typically by asking other nodes to open channels in the opposite direction or by performing on-chain swaps.
Marco Argentieri, CEO of Ark Labs, stated that the new protocol was developed after months of prototyping and proof-of-concept realization. Ark now aims to enter the next phase of development, offering low-cost and instantaneous off-chain transfers between network participants.
According to the Ark Labs team, users do not need to configure their own node or manage payment channels; they only need a light wallet on their smartphone to start sending and receiving non-custodial payments through Ark.
Architecture and integration with other protocols
The Ark protocol architecture uses virtual accounts and transactions coordinated by a trustless network of servers known as ASPs (Ark Service Providers), which cannot access user funds. Thanks to its simple server-client architecture, Ark allows for a significant reduction in transaction costs without compromising non-custodial systems. Argentieri explained that Ark is designed to integrate with other layer-2 protocols, such as the Lightning Network and Liquid Network, and hopes to leverage these synergies to build more reliable products or applications.
Current status and future developments
After the project’s launch last year by developer Burak Keceli, Ark’s development was slowed due to discussions about future updates to the Bitcoin network. However, Argentieri believes it is now time to advance with the development. Currently, there are two versions of Ark in development: one for the Bitcoin network and another for the Liquid network. The goal is to launch applications or products by the end of 2024.
Ark Labs has made the protocol implementation open-source, inviting interested developers to contribute. This approach aims to establish standards and best practices to facilitate access to Ark servers for every wallet. The Ark Labs team aims to develop a flexible protocol version that can be easily integrated into existing wallets.
Argentieri stated:
“We’re hoping other teams and implementations start contributing to the Ark protocol so that we can come up with best standards and practices. Our goal is to give every wallet access to an Ark server in the same way they can use Lightning today.”
