Block will bet bitcoin reserves on lightning

Last Updated: 3 March 2023

TBD of Block has developed a new service for the lightning network. Once again, it will have a cryptic name: c=.

Putting Bitcoin to work

Block used to be called Square, and with Square Crypto they also had a separate bitcoin branch at the time. Currently this is called Spiral, and in addition they are working on DeFi on bitcoin with yet another branch called TBD.

There will be another new service in Jack Dorsey’s company’s suite: one specifically for lightning.

The goal of c= is to “provide infrastructure using bitcoin from Block’s reserves to make the lightning network more usable and reliable for developers, businesses and those businesses’ end users”.

This is evident from the initial announcement and the website now online.


C=, also pronounced C-equals, makes a good point: liquidity in the lighting network is very important. Often, this is the problem áf a payment does not successfully arrive at the recipient.

To address that, “c= will build infrastructure using bitcoin connecting it to the network so that companies and wallets can make their lighting transactions more reliable.”

“Operating a node on the lightning network is all about connections; c= offers node owners valuable connections to lightning.”

“Through c=’s LSP, any business or individual with a lightning node can become more efficient and conduct their lightning transactions with minimal effort and investment, without depending on a middleman to hold their bitcoin.”

LSP

So that’s where a more familiar term finally comes out of the top hat: LSP. This stands for Liquidity Service Provider. Or rather c= will thus act as a party offering their own bitcoin ín this secondary layer on top of bitcoin. Through APis, developers can plug into a well-connected network in a simple way.

Nick Slaney is the managing director of c=, and he explains:

“We are excited to use bitcoin from our treasury for lightning and grow our business in a mutually beneficial way.”

Author
  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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