The blockchain protocols which underpin bitcoin and other cryptocurrencies can only support a small fraction of the transaction throughput which flows through existing financial infrastructure. In order for cryptocurrencies to serve as a viable alternative to existing financial networks, or power the innovative new financial activity promised by decentralized protocols, they must be able to scale to support more transaction throughput. Second layer scaling solutions have emerged as the leading mechanism through which a blockchain protocol can remain decentralized, but support a greater throughput of transactions.
But in order to support a wide range of economic activity, cryptocurrencies must solve for privacy in addition to achieving greater scalability. This is because most blockchains and all existing second layer scalability solutions leak information to the public which compromises privacy of the users that would leverage their innovation.
Enter Bolt Labs. By leveraging groundbreaking cryptographic techniques, Bolt Labs has developed the BOLT: Blind Off-chain Lightweight Transactions protocol, which facilitates payment channels that are both highly scalable and fully privacy preserving.