Ark Labs to Launch Bitcoin Layer 2 Solution

Ark Labs is developing a second-layer network for the digital gold, based on the Ark protocol, as reported by The Block.

The new Bitcoin scaling solution promises easier interaction compared to the Lightning Network, along with a non-custodial approach.

Developers emphasized that users will not need to manage channels or inbound/outbound liquidity to make payments. There is no need to set up personal nodes—an efficient interaction with the network can be achieved with a “light” wallet on a smartphone.

Ark consists of trustless servers known as ASP, which allow users to make “virtual transactions” after depositing funds.

The startup is funded by a grant from Bitcoin-friendly firm Vulpem Ventures. Ark Labs highlighted that several commercial services already use the protocol. The first applications based on the new L2 network will appear soon.

“It is becoming clear that Bitcoin needs more scaling alternatives. We are always keeping an eye on future technologies,” noted Swan Bitcoin CEO and Ark Labs advisor Cory Klippsten.

In late May, the daily number of transactions on the first cryptocurrency’s network reached a historic peak near 720,000.

This surge in on-chain activity is largely driven by the popularity of the Ordinals and Runes protocols. It also underscores the scaling challenges Bitcoin faces and the relevance of developing new L2 solutions.

At the time of writing, the Lightning Network operates with 13,634 nodes connected by 51,968 payment channels. The micro-payment network’s capacity is 4,938 BTC (~$345 million).

Previously, Cardano founder Charles Hoskinson criticized the idea of developing L2 solutions for Bitcoin.