Tether Launches Synonym To Drive Bitcoin Adoption Via Lightning Network

Synonym Software Ltd., a company founded by stablecoin issuer Tether Holdings Limited, officially launched on Tuesday, setting in motion ...


Synonym Software Ltd., a company founded by stablecoin issuer Tether Holdings Limited, officially launched on Tuesday, setting in motion a very ambitious project to bring Bitcoin (BTC) transactions are mainstreamed through an independent financial platform that uses the Lightning Network.

Synonym’s stated goal is to enable self-ownership and control of crypto assets by creating an open financial ecosystem that uses Bitcoin and the Lightning Network, the company said on Tuesday. CEO John Carvalho said, “Hyperbitcoinization won’t magically happen on its own. In order to live in a world without big banks, oppressive regulations or Big Tech presiding over our lives, we need a strategy and an ecosystem to replace the traditional economy. This is where Synonym comes in.

The first protocol launched by Synonym is called Slashtags, an interoperability framework for private networks that does not rely on blockchain technology and can be used by any platform for coordination, privacy and consensus.

The Bitcoin network recently completed its eagerly awaited Taproot upgrade, which aims to improve transaction efficiency, privacy and smart contract functionality. Taproot marks the first major upgrade to the Bitcoin network since Segregated Witness, also known as SegWit, in 2018. SegWit ultimately resulted in the launch of the Lightning Network, Bitcoin’s second layer scaling solution.

Related: Bitcoin Switzerland to enable Lightning Network payments

Scalability has been cited as one of the main obstacles preventing the massive adoption of Bitcoin as a transaction currency. The Lightning Network aims to solve the scalability problem by enabling off-chain transactions. Number of Lightning Network Nodes, who open payment channels between them, a increase 128% in the past 12 months, according to industry sources.

The number of Lightning Network nodes has grown significantly over the past two years. Source: Bitcoin visuals

At the time of writing this article, Bitcoin controls over 43% of the total cryptocurrency market cap. The first digital currency recently reached new all-time highs north of $ 69,000 amid the growing adoption by the general public and the recognition by financial elites that crypto is a new asset class.