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2025-10-30 18:40:21 UTC
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Five on Nostr: Ark server operators create a secondary "VTXO" system which eliminate the need for ...

Ark server operators create a secondary "VTXO" system which eliminate the need for the bidirectional channel setup that LN has.
LN suffers from liquidity lockup: bitcoin sits on channels mostly inefficiently until a payment is initiated.

If your VTXO expires, you cannot unilaterally exit anymore so users are incentivized to move the money from time to time, avoiding inefficiencies of dormant liquidity.

I may be wrong but that's my curent understanding.