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Ark Labs Launches Arkade, First Major Bitcoin Layer 2 Since Lightning, in Public Beta

It uses virtual transaction outputs to deliver programmable off‑chain transfers without altering Bitcoin consensus or relying on wrapped assets.

Overview

  • Arkade virtualizes UTXOs as VTXOs so users can transact off chain with instant execution and reclaim funds on chain through presigned exits.
  • Ark Service Providers coordinate activity without custody, preserving user control even if a coordinator goes offline or misbehaves.
  • Batch settlement compresses thousands of off‑chain operations into a single Bitcoin transaction to cut fees and increase throughput.
  • Lightning interoperability arrives via Boltz to move liquidity between Arkade and Lightning channels for broader payment and finance use cases.
  • The launch debuts Arkade Assets for multi‑asset support with planned USDT integration, early partners include Breez, BlueWallet, BTCPayServer, and BullBitcoin, and the roadmap calls for scripting tools and additional security layers after two years of development backed by Draper Associates, Axiom, and Fulgur Ventures.