Arkade is based on Ark, which means it's a kind of UTXO sharing where each owner has a script path that let's them exit to the chain without any one else's permission, but this only exists within a certain time window. Of the user doesn't join signing a new transaction, the Arkade operator gains custody of their bitcoin.
Nonetheless, Ark is interesting and here you will learn a little more about one implementation of it:
Arkade is a programmable execution layer for Bitcoin.Built on top of the Ark protocol, it works with Bitcoin exactly as it exists today.With Ark, Bitcoin remains the settlement layer, anchoring all execution to L1.Execution happens on Arkade offchain, instantly, at scale.Bitcoin's UTXO model is incredibly powerful, but constrained by block times, fees, and limited scripting.Arkade virtualizes this design through a client-server architecture.Users submit transactions while the Arkade operator coordinates execution, validation, and settlement.
Arkade uses VTXOs (Virtual Transaction Outputs).VTXOs mirror Bitcoin UTXOs but exist offchain in Arkade's Virtual Mempool.Each VTXO is backed by presigned Bitcoin transactions, giving users unilateral exit rights at all times.The operator never controls your funds.
These VTXOs live within batch outputs: a single onchain UTXO secured by n-of-n multisig.Each VTXO can still be independently spent or claimed, but, thanks to Taproot, hundreds compress into one Bitcoin output onchain.Spending conditions are set and signed at batch creation.
The Virtual Mempool processes transactions as a DAG (directed acyclic graph) rather than a linear queue.Independent transaction branches execute in parallel. No global state bottlenecks, no block times.Unlike blockchain based alternatives, throughput is virtually unlimited!
Arkade allows complete control over transaction finality.Preconfirmations enable instant execution within the Virtual Mempool.Users decide when to anchor these transactions to Bitcoin via settlement, gaining full security.Optimize for speed, cost, or security. Your choice.When users opt for Bitcoin finality, the operator coordinates batch swaps:Users exchange preconfirmed VTXOs for new ones within a new onchain batch. Multiple batches can be included into a single Commitment Transaction.Participating users share onchain settlement costs.
Arkade enables entirely new applications on Bitcoin.With upcoming Arkade Script (our enhanced scripting environment), developers can build:
- Native capital markets & lending protocols
- DEXs with instant execution
- Programmable vaults
- Smart wallets
All self-custodial.The implications are massive: Arkade transforms Bitcoin from static money into programmable money.No changes to the base layer required. No liquidity fragmentation. No risky bridges.Time to level up 👾Dive deeper: https://docs.arkadeos.com/