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What Ark Could Potentially Learn From Lightning

The article discusses the upcoming launch of Arkade Wallet's implementation of clArk, a Layer 2 protocol with a unilateral exit or enforcement mechanism on the Bitcoin base layer. However, clArk has limitations, such as the requirement for users to collaboratively sign exit transactions in a multisig. The article also compares Ark with the Lightning Network, highlighting the difference in liquidity allocation. While Lightning requires individual users to allocate and source liquidity, Ark allows any Ark Service Provider (ASP) to assign liquidity to its users from a common pool. However, Ark still faces liquidity issues, leading to higher fees. To address this, the article suggests exploring the concept of a routable topology, similar to Lightning, where ASPs can punt payments to other ASPs with more liquidity. This would create a cooperative dynamic between ASPs, improving the user experience. However, there are risks associated with interlinking Arks across different ASPs. Despite potential upsides and downsides, the article concludes that exploring this concept could help address Ark's liquidity crunch issue.

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