Synonym Software Ltd. was started. , a company founded by stablecoin issuer Tether Holdings Limited, officially launched on Tuesday a highly ambitious project to distribute Bitcoin (BTC) transactions through an independent financial platform using the Lightning Network.
Synonyms’ stated goal is to secure self-ownership and control of cryptocurrencies by creating an open financial ecosystem that leverages Bitcoin and the Lightning Network, the company announced Tuesday. “Hyperbitcoinization will not magically happen on its own,” said CEO John Carvalho. “To live in a world without big banks, strict rules, or big technology governing our lives, we need a strategy and ecosystem to replace the old one. This is where the synonym comes in. …”
The first protocol that Synonym launched is called Slashtags, an interactive framework for private networks that is independent of blockchain technology and can be used by any platform for coordination, privacy, and consensus.
The Bitcoin network recently completed a much-anticipated Taproot update, which aims to improve transaction efficiency, privacy, and smart contract functionality. Taproot marks the first major update to the Bitcoin network since Segregated Witness, aka SegWit, in 2018. SegWit finally culminated in the launch of the Lightning Network, a Level 2 Bitcoin scaling solution.
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Scalability has been cited as one of the biggest obstacles to the massive adoption of bitcoin as a transaction currency. The Lightning Network aims to address the scalability issue by enabling off-chain transactions. According to industry sources, the number of Lightning Network nodes that open payment channels with each other has increased by 128% in the past 12 months.
The number of Lightning Network nodes has grown exponentially over the past two years. Source: Bitcoin Visuals
At the time of writing, Bitcoin made up over 43% of the total cryptocurrency market capitalization. The leading digital currency recently set new all-time highs above $69,000, amid growing mass adoption and acceptance by the financial elite that cryptocurrency is a new asset class.