This month, the crypto-focused payment processor, Square Crypto issued a grant to the Lightning Network development team from Talaia. The grant is to go towards furthering research in the Eye of Satoshi watchtower platform. Importantly, Square crypto believes that this unique off-chain monitoring system can help to secure the Lightning Network from multiple attacks. The news demonstrates further investment into the Lightning Network ecosystem.
Eye of Satoshi – Talaia
The Eye of Satoshi is a Lightning Network watchtower. Watchtowers are third-party protocols that are able to monitor Blockchain transactions. These programs are set to notify users when malicious activities trigger an alarms sequence. Notably, watchtowers first emerged in 2019 as an experimental “semi-trusted payment channel sheriff.”
These automated tracking programs constantly monitor Lightning Network blockchain transactions, even when you exit the internet. Watchtowers play an increasingly important role in the LN-ecosystem for a number of reasons. Primarily, they “protect you from peers closing the channel and taking your coins.” Consequently, they improve censorship resistance by making certain attacks harder to accomplish.
Light Clients – Talaia
As more light client wallets appear on the market, more users are connecting to the Lighting Network via these platforms. Light client wallets differ from traditional LN-wallets because they don’t require you to run a full node. These stripped-down versions of a node make it possible for mobile wallets to function smoothly.
Possible problems arise when users sign off of their light client wallets and exit the internet. Their wallets remain online. During times of online exposure, users are left vulnerable to attacks. Watchtowers eliminate this risk by keeping careful tabs on your crypto after you exit the internet. In this way, your funds never go unmonitored.
Square Cryptos Goal with Talaia Investment
According to Square Crypto, the goal of the project is to research the use of watchtowers in securing Lighting Network. Square Crypto is the blockchain development arm of the payment processing giant Square. Notably, Square’s founder is a long-time Bitcoin advocate and Twitter CEO Jack Dorsey.
Interestingly, Talaia chose c-lightning as the programing language to build their first project. C-lighting is the coding used by the Lightning Network developer Blockstream. Blockstream is among the top LN-developers in the space. The group is known for its many advancements in the sector. Paramountly, they were the first company to send Bitcoin satellite nodes into space.
This grant follows the issuance of numerous other LN-related grants by Square Crypto. This year, Square pledged funds to well known Bitcoin Core contributor Jon Atack and Bitcoin developer Tankred Hase. Additionally, a BTC developer known only as ZmnSCPxj received one to further research into this game-changing protocol.
As it stands now, you can expect Square to continue to forge ahead with its goal to create a stable and scalable Lightning Network ecosystem. For now, all eyes are on Talaia.