#BTC #Lightning #RGB #SPARK #ARK
Four Off-Chain Scaling Solutions for BTC
I’m deeply interested in BTC’s off-chain scaling solutions, as I believe they represent the future of BTC’s scalability.
My reasoning is based on two key points:
▪️Only off-chain solutions can deliver high transaction speeds.
▪️Off-chain scaling is the consensus among those shaping BTC’s development.
Below, I’ll briefly introduce the four protocols I’m focused on:
RGB Protocol
Lightning Network
Spark Protocol
Ark Protocol.
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🟢RGB Protocol
Goal:
Leverage the security of Bitcoin’s mainnet and Lightning Network to enable scalable, privacy-focused smart contract capabilities.
Overview:
▪️Built on Client-Side Validation and Single-Use Seals.
▪️Smart contract data and execution occur off-chain, with state commitments anchored to Bitcoin UTXOs.
▪️Uses the Lightning Network (via Bifrost protocol) for multi-party coordination and asset transfers.
▪️Employs Bitcoin UTXOs as seals to verify contract states.
▪️Requires no changes to Bitcoin’s protocol.
▪️Offers high privacy, with off-chain data visible only to relevant parties.
▪️Supports zero-knowledge proofs for enhanced anonymity.
Use Cases:
▪️Decentralized finance (DeFi), NFT issuance, and asset tokenization.
▪️Privacy-sensitive smart contract applications.
▪️Decentralized exchanges (DEX) integrated with the Lightning Network.
🟢Lightning Network
Goal:
Address Bitcoin’s mainnet issues of slow transaction speeds and high fees, enabling fast, low-cost peer-to-peer micropayments.
Overview:
▪️Utilizes Bidirectional Payment Channels and Hashed Timelock Contracts (HTLC).
▪️Transactions occur in off-chain channels, with only channel opening/closing recorded on the mainnet.
▪️Payments are routed through a network of nodes.
▪️Channel operations require on-chain transactions for settlement.
▪️No protocol changes needed, but users must manage channels.
▪️Offers better privacy than on-chain transactions, though channel states may be visible to routing nodes.
▪️Privacy enhancements (e.g., PTLC) are under development.
Use Cases:
▪️Micropayments (e.g., coffee, content subscriptions).
▪️Peer-to-peer transfers.
▪️Enterprise payment integrations.
🟢Spark Protocol
Goal:
Enhance payment scalability for Bitcoin and the Lightning Network, with a focus on stablecoin payments.
Overview:
▪️Based on Statechain technology, enabling off-chain UTXO ownership transfers via private key handovers.
▪️Supports Atomic Swaps and stablecoin issuance.
▪️Natively compatible with the Lightning Network, allowing instant, fee-free UTXO transfers.
▪️Transactions occur off-chain, with on-chain Bitcoin settlement via atomic swaps when needed.
▪️Requires no changes to Bitcoin’s protocol.
▪️Provides moderate privacy, as off-chain transfers aren’t directly recorded on-chain.
▪️Relies on a trust model with Spark Operators (SOs), offering slightly less privacy than RGB.
Use Cases:
▪️High-frequency payments (e.g., retail, e-commerce).
▪️Stablecoin issuance and trading.
▪️Developer-built self-custodial wallets and payment apps.
🟢Ark Protocol
Goal:
Deliver low-cost, user-friendly off-chain payments, addressing the Lightning Network’s liquidity management and channel setup complexities.
Overview:
▪️Uses Virtual UTXOs (vTXOs) and a shared UTXO model, coordinated by Ark Service Providers (ASPs) for off-chain payments.
▪️Supports instant, one-way payments without channel management or pre-funded liquidity.
▪️Enhances anonymity with off-chain CoinJoin.
▪️Settles periodically via on-chain transactions (Rounds).
▪️Requires BIP-119 (CTV) or similar soft fork for full functionality.
▪️Offers high privacy through CoinJoin, obscuring transaction links.
▪️vTXOs limit value ranges to further boost anonymity.
Use Cases:
▪️Simplified payment experiences (e.g., onboarding new users).
▪️Privacy-sensitive off-chain transfers.
▪️Multi-party payments integrated with the Lightning Network.
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🔵Asset Types
▪️RGB: RGB assets are independently designed with various types, comparable to the diverse assets in the EVM ecosystem.
▪️Lightning Network: Taproot assets, a collective term for a category of assets.
▪️Spark: LRC20.
▪️Ark: Theoretically supports various Layer 1 assets.
🔵Relationships
In fact, RGB, Spark, and Ark can all be deeply integrated with the Lightning Network.
🔵Future
It’s hard to predict which of these four solutions will ultimately prevail or whether each will carve out its own niche in the Bitcoin scaling landscape. Let’s wait and see.
ChainCatcher News, Binance's second batch of voting activities to announce specific projects. These include ZEC, JASMY, FTT, STPT, ARK, ARDR, GPS, MBL, PERP, NKN, WING, LTO, FLM, BSW, ALPACA, VOXEL, PDA.
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EV3 Sal
How profitable is it to run decentralized infrastructure? Looked at profit margins for Decentralized Physical Infrastructure Networks (DePINs):
For 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲 𝗡𝗲𝘁𝘄𝗼𝗿𝗸𝘀 (𝗗𝗥𝗡𝘀), reward based profit margins range from 0% to 200%. 𝗗𝗥𝗡𝘀 𝘁𝗵𝗮𝘁 𝗼𝗳𝗳𝗲𝗿 𝗱𝗲𝗹𝗲𝗴𝗮𝘁𝗲𝗱 𝘀𝘁𝗮𝗸𝗶𝗻𝗴 𝘁𝗲𝗻𝗱 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗵𝗶𝗴𝗵𝗲𝗿 𝗽𝗿𝗼𝗳𝗶𝘁 𝗺𝗮𝗿𝗴𝗶𝗻𝘀, e.g., Livepeer, The Graph, Filecoin, and Covalent.
In contrast, 𝗣𝗵𝘆𝘀𝗶𝗰𝗮𝗹 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲 𝗡𝗲𝘁𝘄𝗼𝗿𝗸𝘀 (𝗣𝗥𝗡𝘀) typically achieve:
• ~𝟱𝟬% profit margins 𝗳𝗼𝗿 𝗟𝗼𝘄-𝗖𝗼𝘀𝘁 𝗡𝗼𝗱𝗲𝘀: e.g., Dimo, Helium, or Arkreen where nodes cost several hundred dollars at most.
• ~𝟮𝟬𝟬% 𝗮𝗻𝗱 𝗮𝗯𝗼𝘃𝗲 profit margins 𝗳𝗼𝗿 𝗛𝗶𝗴𝗵𝗲𝗿-𝗖𝗼𝘀𝘁 𝗡𝗼𝗱𝗲𝘀: e.g., Helium Mobile, XNET, WeatherXM, Hivemapper, and GEODNET, where the nodes start at $400.
For details and assumptions, check my full research w/ @KoschigRobert (@1kxnetwork ) and @dylangbane (@MessariCrypto) on token rewards in DePINs:
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Farside Investors
After 8 consecutive Bitcoin ETF outflow days, looks like today might be an inflow day
$194m inflow for Ark
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Ark price performance in USD
The current price of ark is $0.0021669. Over the last 24 hours, ark has decreased by -0.32%. It currently has a circulating supply of 1,000,000,000 Ark and a maximum supply of 1,000,000,000 Ark, giving it a fully diluted market cap of $2.17M. The ark/USD price is updated in real-time.
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About Ark (Ark)
Ark (Ark) is a decentralized digital currency leveraging blockchain technology for secure transactions. As an emerging global currency, Ark currently stands at a price of $0.0021669.
Why invest in Ark (Ark)?
As a decentralized currency, free from government or financial institution control, Ark is definitely an alternative to traditional fiat currencies. However, investing, trading or buying Ark involves complexity and volatility. Thorough research and risk awareness are essential before investing.
Find out more about Ark (Ark) prices and information here on OKX today.
How to buy and store Ark?
To buy and store Ark, you can purchase it on a cryptocurrency exchange or through a peer-to-peer marketplace. After buying Ark, it’s important to securely store it in a crypto wallet, which comes in two forms: hot wallets (software-based, stored on your physical devices) and cold wallets (hardware-based, stored offline).
Number of posts mentioning a token in the last 24h. This can help gauge the level of interest surrounding this token.
Contributors
Number of individuals posting about a token in the last 24h. A higher number of contributors can suggest improved token performance.
Interactions
Sum of socially-driven online engagement in the last 24h, such as likes, comments, and reposts. High engagement levels can indicate strong interest in a token.
Sentiment
Percentage score reflecting post sentiment in the last 24h. A high percentage score correlates with positive sentiment and can indicate improved market performance.
Volume rank
Volume refers to post volume in the last 24h. A higher volume ranking reflects a token’s favored position relative to other tokens.
In the last 24 hours, there have been 12K new posts about Ark, driven by 6.9K contributors, and total online engagement reached 15M social interactions. The sentiment score for Ark currently stands at 73%. Compared to all cryptocurrencies, post volume for Ark currently ranks at 329. Keep an eye on changes to social metrics as they can be key indicators of the influence and reach of Ark.
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Posts
11,926
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6,885
Interactions
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Sentiment
73%
Volume rank
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Posts
1,634
Interactions
460,883
Sentiment
75%
Ark FAQ
What’s the current price of Ark?
The current price of 1 Ark is $0.0021669, experiencing a -0.32% change in the past 24 hours.
Can I buy Ark on OKX?
No, currently Ark is unavailable on OKX. To stay updated on when Ark becomes available, sign up for notifications or follow us on social media. We’ll announce new cryptocurrency additions as soon as they’re listed.
Why does the price of Ark fluctuate?
The price of Ark fluctuates due to the global supply and demand dynamics typical of cryptocurrencies. Its short-term volatility can be attributed to significant shifts in these market forces.
How much is 1 Ark worth today?
Currently, one Ark is worth $0.0021669. For answers and insight into Ark's price action, you're in the right place. Explore the latest Ark charts and trade responsibly with OKX.
What is cryptocurrency?
Cryptocurrencies, such as Ark, are digital assets that operate on a public ledger called blockchains. Learn more about coins and tokens offered on OKX and their different attributes, which includes live prices and real-time charts.
When was cryptocurrency invented?
Thanks to the 2008 financial crisis, interest in decentralized finance boomed. Bitcoin offered a novel solution by being a secure digital asset on a decentralized network. Since then, many other tokens such as Ark have been created as well.
Monitor crypto prices on an exchange
Watch this video to learn about what happens when you move your money to a crypto exchange.
Disclaimer
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