Tether introduces Synonym in order to increase Bitcoin adoption over the Lightning Network
By combining the Lightning Network’s speed with the design of an open peer-to-peer platform, the new enterprise aims to achieve hyperbitcoinization.
Synonym Software Ltd., a business formed by stablecoin issuer Tether Holdings Limited, began formally on Tuesday, kicking off a very ambitious mission to mainstream Bitcoin (BTC) transactions through an independent financial platform using the Lightning Network.
Synonym’s declared objective is to promote self-ownership and management of crypto assets via the establishment of an open financial ecosystem based on Bitcoin and the Lightning Network, the firm revealed Tuesday. “Hyperbitcoinization will not occur magically,” CEO John Carvalho said. To live in a society free of large banks, repressive laws, and Big Tech ruling our lives, we need a strategy and ecosystem to replace the legacy economy. That is when Synonym enters the picture.”
Synonym’s initial protocol is called Slashtags; it is an interoperability framework for private networks that is not based on blockchain technology and can be used for coordination, privacy, and consensus by any platform.
The Bitcoin network finally completed the long-awaited Taproot update, which focuses on increased transaction efficiency, anonymity, and smart-contract capabilities. Taproot is the first significant improvement to the Bitcoin network after Segregated Witness, or SegWit was introduced in 2018. SegWit ultimately resulted in the Lightning Network’s debut as Bitcoin’s second-layer scaling solution.
Scalability has been highlighted as one of the primary impediments to Bitcoin’s widespread acceptance as a transactional currency. By permitting off-chain transactions, the Lightning Network hopes to address the scalability problem. According to industry insiders, the number of Lightning Network nodes, which connect payment channels, has surged by 128 percent over the last 12 months.
Over the last two years, the number of Lightning Network nodes has expanded dramatically. Bitcoin Visuals. Bitcoin now controls more than 43% of the overall cryptocurrency market capitalization. The world’s most popular digital currency just surpassed new all-time highs beyond $69,000, thanks to increased mass use and financial elite awareness that crypto is a new asset class.
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