Proposal for SS8: Ark Protocol and bitcoin scaling payment #4
Description
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A topic related to this was discussed at Socratic Seminar 6
ARK Protocol introduces a novel way to scale Bitcoin transactions by using virtual UTXOs (vTXOs) managed by ARK Service Providers (ASPs) through his new wallet Arkade Money. This design promises fast, private, and low-cost payments without constant on-chain interactions. However, it also raises questions about liquidity requirements, trust assumptions, and long-term sustainability compared to other Layer-2 solutions like the Lightning Network. Understanding ARK’s scaling mechanism is essential for evaluating whether it can complement or even replace existing payment layers. The protocol challenges our assumptions about decentralization, liquidity, and the economic limits of scaling Bitcoin — making it a rich topic for philosophical and technical debate.
Question
Does ARK truly decentralize Bitcoin payments, or does it merely shift trust toward liquidity providers (ASPs)?
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