Introducing Ark: An Alternative Bitcoin Scaling Solution Focused On Preserving Privacy By Kudzai Kutukwa Ark is a Layer 2 scaling solution introduced at the Bitcoin 2023 conference. It aims to enable cheap, anonymous, and off-chain Bitcoin transactions while preserving user privacy. The protocol, developed by Burak, uses virtual UTXOs (vTXOs) that exist off-chain for a limited period. It leverages CoinJoin rounds to obfuscate the connection between senders and receivers, enhancing privacy. Ark does not require users to have channels or liquidity; instead, liquidity is provided by Ark service providers (ASPs) who cannot link senders with receivers. While it may not offer instant settlements like Lightning, it provides immediate accessibility to funds. The protocol is interoperable with Lightning but addresses certain shortcomings in terms of privacy and onboarding setup. Ark prioritizes user control over funds and offers an alternative to custodial solutions. However, it is still in development, and the code and a working prototype are not available yet. Nonetheless, Ark is seen as a promising solution that balances privacy, scalability, and user-friendliness in the context of the growing need for non-custodial, privacy-preserving tools in the face of increased regulatory scrutiny. |