Challenges and Requirements of the Arc Model

This chapter discusses the challenges and requirements of a specific model called Arc in the context of Bitcoin's Layer 2 solutions. They mention that Arc requires a soft fork to be usable and has a significant capital requirement on the service providers. The speakers then compare the timeline of Lightning Network's development and adoption to highlight that it takes time for new protocols to gain traction. They also discuss the potential trajectory of Arc, noting that it may be more centralized compared to Lightning. The chapter concludes by mentioning that Arc may only require one central implementation to go to market.