Ark Labs has launched Arkade in public beta, a new Bitcoin-based Layer 2 solution. This system allows fast and programmable off-chain transactions using presigned virtual Unspent Transaction Outputs (UTXOs).
This development significantly improves Bitcoin’s scalability, offering quick and low-cost transactions without changing Bitcoin’s core rules.
Benefits of Arkade Launch
Unlike many Layer 2 solutions that need updates or major changes to Bitcoin’s structure, Arkade works entirely within Bitcoin’s current security system. This makes it secure and easy to use. Arkade utilizes Bitcoin’s strength and adds new features and flexibility.
Arkade’s key innovation is the off-chain virtualization of UTXOs. These virtual UTXOs allow users to send, lend, or trade assets instantly, without the delays or fees associated with on-chain confirmations. This setup allows for trustless interactions, and users can choose to return to the Bitcoin mainchain whenever they want, maintaining decentralization and user control.
Alongside the main protocol, Ark Labs has introduced Arkade Assets. This is a multi-asset framework that enhances Arkade’s features to include stablecoins and other digital assets.
It aims to support tokenized finance on Bitcoin, starting with plans for USDT (Tether). By integrating these assets into the off-chain layer, Arkade Assets enables the creation of high-speed DeFi applications on the Bitcoin network.
Rootstock Launch Tools for Building Bitcoin Layer-2 Solutions
In April, Rootstock, one of the oldest projects in the Bitcoin ecosystem, launched new tools to help developers.
These tools will make building faster and smarter systems on the Bitcoin blockchain easier. The tools will use BitVMX, a new and updated version of BitVM. BitVM is a system that enables users to create smart contracts, similar to those on Ethereum, on top of Bitcoin.
With BitVMX, developers can create faster and more useful Layer-2 systems on Bitcoin, similar to what you see on Ethereum. This means Bitcoin can do more things without losing its security. Using BitVMX, Rootstock aims to improve Bitcoin’s speed, scalability, and functionality while keeping the network secure.
Partnership to Boost Bitcoin Development
Last year, Rootstock teamed up with Fairgate, a blockchain company. Together, they used BitVMX to check a special kind of proof called a zero-knowledge SNARK.
This is a type of cryptographic proof that helps confirm information without showing the actual data. It is used in Ethereum to make systems more private and scalable, and now Bitcoin can use it, too.
Furthermore, Rootstock, Fairgate, and a blockchain firm called Input Output (IO) also collaborated to form a group called BitVMX Force. This group will help set standards and prepare Bitcoin for future updates and improvements.