Arkade is a programmable execution layer for Bitcoin.It enables fast, self-custodial financial applications on Bitcoin, including lending, smart wallets, and trading, without requiring consensus changes to the Bitcoin protocol.With Arkade, you can:
Access lending protocols without giving up custody of your Bitcoin
Trade on decentralized exchanges without custodial intermediaries
Build smart wallets with embedded logic and recovery mechanisms
Deploy programmable payments and contracts
Operations execute offchain for speed, with users choosing when to anchor to Bitcoin for full security.
Arkade adds financial logic to bitcoin payments.Bitcoin is the world’s most secure monetary network, but its potential as programmable money remains largely untapped. While Bitcoin excels as a store of value, it lacks the ability to express advanced financial logic without custodial services or bridges to alternative chains.Arkade delivers:
Programmability - add financial logic to payments
Self-custody - users retain unilateral exit control to Bitcoin L1
No. Arkade is not a blockchain, sidechain, or rollup.It is an offchain execution layer that operates over native Bitcoin UTXOs using Virtual Transaction Outputs (VTXOs), batch settlement, and presigned transaction paths.
The Virtual Mempool is Arkade’s offchain execution layer, a dynamic coordination environment for Bitcoin-native applications.It powers real-time transaction flows that:
Emulate Bitcoin’s UTXO model through Virtual Transaction Outputs (VTXOs)
Execute in parallel without global state bottlenecks
Let users control when (and if) to anchor to the Bitcoin blockchain
Arkade’s execution layer is designed for scale. Transactions form a directed acyclic graph (DAG) that enables independent branches to execute simultaneously. Execution is instant, and settlement is batched onchain.
The Arkade Operator coordinates offchain activity through a modular architecture comprising several functions: transaction aggregation and validation, onchain batch creation and liquidity provisioning.The Operator:
Validates transactions in the Virtual Mempool
Issues preconfirmations for instant execution
Posts settlement batches to Bitcoin
Cannot control user funds — every VTXO includes presigned Bitcoin exit paths
For added security, critical roles like the Arkade Signer are separated from the operator and run independently within a Trusted Execution Environment (TEE), providing verifiable proof of correct behavior and preventing even the operator from accessing signing keys.
Virtual Transaction Outputs (VTXOs) are programmable, offchain objects that mirror Bitcoin’s UTXO structure while expanding their capabilities within Arkade’s virtual execution environment. Each VTXO contains two spending paths: the exit path (unilateral control) and a collaborative path (default operation) and is backed by a presigned Bitcoin transaction. VTXOs operate in three states:
Preconfirmed: Validated and cosigned, can be spent immediately
Bitcoin Finality: Anchored onchain through commitment transactions
Are Arkade transactions real Bitcoin transactions?
Yes — and no.Every Arkade transaction:
Is structured like a Bitcoin transaction (inputs, outputs, scripts)
Produces valid presigned Bitcoin exit paths
Can be anchored to Bitcoin via batch outputs
Arkade transactions are not immediately published to the Bitcoin chain. They execute instantly offchain with preconfirmations, then batch settle onchain. Arkade keeps this tradeoff explicit: users and applications control when to finalize to Bitcoin and reclaim full security guarantees.
The Ark protocol introduces a method for offchain transaction batching and unilateral exits via presigned transactions.Arkade builds on Ark as a foundational component:
Ark provides the anchoring and settlement layer
Arkade provides the execution and coordination layer
Arkade extends Ark beyond simple payments into a complete execution environment for programmable Bitcoin applications.
Arkade Script is Arkade’s enhanced scripting environment that extends Bitcoin Script with additional capabilities for programmable applications.Key features:
Enhanced introspection — Scripts can examine transaction context and metadata
Advanced arithmetic — Comprehensive mathematical operations for financial logic
Complex logic — Multi-path execution and sophisticated conditional flows
Asset operations — Native handling of multi-asset flows and collateral tracking
Arkade Script is designed for expressiveness and safety while maintaining compatibility with Bitcoin settlement.
VTXO ownership means being in control of a presigned Bitcoin transaction.If the operator becomes unresponsive or malicious, users can simply broadcast their presigned transaction on Bitcoin.