Block Inc., the American global payments company, has recently announced (1) the foundation of a new subsidiary that will be known as C=. This move was made in an effort to drive the general usage of the Lightning Network.
Despite the fact that it was not the original creator of the Lightning Network, Block has shown a significant amount of dedication to the expansion of the latter thanks to the efforts of Jack Dorsey, one of the most prominent Bitcoin maximalists now operating.
C= was developed with the intention of
“building services using bitcoin from Block’s treasury to make bitcoin’s Lightning Network more useful and dependable for devs, business owners (such as retailers who accept Lightning payouts), and the end consumers of those businesses,” as stated in a press release that was distributed by the company.
When Satoshi Nakamoto first conceived Bitcoin, he had the primary intention of having it operate as a vehicle for the exchange of value. The leading cryptocurrency has fulfilled this function up to this point, as seen by the widespread adoption that it has seen.
Overall, it has expanded significantly, and there is now a bottleneck, which manifests itself as slower and costlier transactions. This is a result of the increased demand.
This served as the foundation for the development of the Lightning Network, which is a Layer-2 protocol that is constructed on top of the blockchain for Bitcoin. In general, the Lightning Network addresses the issues that plague Bitcoin, but it also has its own fundamental difficulty, which is a lack of liquid resources.
As a solution to this inherently difficult problem, the new Block division has been established. “c= will create infrastructure utilizing the bitcoin it is contributing to the system so that companies and wallets may make their Lightning payments more secure and dependable,” the company said in a statement.
To be more specific, C= will give node owners, wallet providers, and common users in order to strengthen the links to the Lightning Network. According to the company, C= will make it unnecessary to rely on a third party for liquidity provisions, which will remove a significant source of inconvenience.
Objectives of Blocks New Subsidiary C=
In its press statement, C= will engage in an entirely new form of interaction with every participant it brings on board.
It stated that the provision of liquidity to enable transactions will be the defining characteristic of its relationship with the node operators and that it will “collaborate with programmers to deliver more efficient routing and availability to node operators via APIs and services.”
The business that Jack Dorsey leads is dedicated to the further development of cryptocurrency payments using Bitcoin.
Allowing accessibility to its Bitcoin reserve is touted to assist in pushing forward the overall usefulness of the protocol, the influence of which has started spreading to new countries, but the exact monetary obligations are not stated.
Block Inc. will now have a definite presence in the ecosystem of the Lightning Network, not just as a promoter but also as a substantial stakeholder, thanks to the new company that it has established.
According to Nick Slaney, lead at c= and an expert in bitcoin transactions,
“The Lightning Network is the future of bitcoin transactions; but, it is still young, and it can be difficult to have liquidity when you require it to send and receive your payments. We are delighted to use the bitcoin that we have in our treasury to build the Lightning Network as well as our own firm in a way that is beneficial to both parties.”