Square Crypto Issues Grant to Lightning Network Blockchain Monitor, ‘The Eye of Satoshi’

  • The Spain-based startup, Talaia, focused on building watchtowers on Bitcoin’s Layer 2 solution, the Lighting Network, becomes the sixth startup to receive grant funding from Square Crypto.
  • The funding will be channeled to the Eye of Satoshi project that will protect users from losing their funds from peers when the user or node goes offline.

Square Crypto offers the sixth grant to Bitcoin dev team

Bitcoin’s layer 2 solutions including the LN have been facing one major problem in that you have to keep the node online. If the node goes off for a few days, then there is a higher likelihood for someone to steal your satoshis. Watchtowers, introduced in 2019, will work as the solution to this providing a third party that watches the mempool for any transaction from the offline node.

On May 8, the founder of the Eye of Satoshi, Sergi Delgado, shared a document showing the implementation of Talaia on C-Lightning “enabling Watchtower clients to be hooked to their daemon through their plugins”.

According to the statement from Square Crypto, an arm of Jack Dorsey owned Square, Talia will also improve the “censorship resistance by making certain attacks harder.”

This represents the sixth grant by Square Crypto to a Bitcoin development team after successive grants to an anonymous lighting contributor going by the name ZmnSCPxJ and a $100,000 grant to crypto payments processor, BTCPay Server in 2019.

Lightning Labs efforts to widespread L2 solutions

Since Lightning Labs, the frontline developer of LN, raised $10 million in a Series A led by Craft Ventures, several development upgrades have launched on the platform. In April, Lightning Labs announced the launch of the Lightning Service Authentication Tokens (LSAT) in a bid to do away with passwords and login credentials in place of a “fee”.

The platform’s volumes are however dwindling into the abyss, as the volume of Wrapped BTC (BTC held on ETH) overtook the total volume held on LN. Talaia’s Eye of the Project with be a key addition providing increased security which is a key barrier for the widespread adoption of the L2 solution.

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