https://docs.arklabs.xyz/

Bitcoin's blockchain offers strong security guarantees at the tradeoff of limited transaction throughput, high fees, and settlement delays, restricting its practical use for various applications requiring greater scalability, lower costs, or faster settlement.

Ark addresses these limitations primarily through a novel batching technique, aggregating numerous individual Bitcoin transactions into a single onchain Bitcoin commitment—called a Batch Output. This significantly reduces transaction costs per user and greatly enhances scalability.

The protocol mirrors Bitcoin’s familiar UTXO structure using Virtual Transaction Outputs (VTXOs). These offchain abstractions preserve a familiar output ownership model while embedding many claims into a single Batch Output. VTXOs ensure that users retain unilateral control over their funds and enable efficient offchain coordination before final settlement on Bitcoin.

Link for details!

👾