Lightning Speed: Branding Opportunities On The Lightning Network, A How-To Guide
June 22 2022 - 7:48PM
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Leveraging the Lightning Network for branding? Is that even
possible? Voltage, a bitcoin infrastructure provider, makes a great
case for it. Granted, their “Identity and brand on the Lightning
Network” article is in itself a branding effort by the company.
That doesn’t mean the information it contains is invalid, though.
In fact, they probably hit the nail on the head with this one.
Related Reading | Lightning Speed: What’s The Lightning Development
Initiative? The company’s CEO, Graham Krizek, is the piece’s
author. “One of the interesting things about the Lightning Network
is that you as a node operator have a “billboard” (an alias) with
which to advertise your node. The alias is a human-readable, and
changeable value that people interacting with your node can see,”
he says going straight to the point. The other factor here is time.
Companies that start their branding efforts now will reap the most
benefits in the future. Let’s let Voltage explain what their thesis
is about: “The Lightning Network is still in the Innovator to Early
Adopter phase of the Adoption S-Curve. Despite rapid growth,
participants continue to have a unique opportunity to use minimal
effort to capture a large potential upside in value. The creation
of a node in under 2 minutes allows companies and individuals to
have a stake in the Lightning Network and leverage this to build
differentiating brands.” The keywords here are “minimal effort” and
“under 2 minutes,” but don’t let Voltage fool you. Spinning up a
node might be an easy and low-cost branding endeavor. Your company
will have to keep it up forever to earn the trust it’s looking for,
though. Branding Over Time And Space The fact of the matter
is this: if bitcoin becomes what it’s supposed to be, the companies
that supported the network from the beginning will get a big
branding boost. “As a decentralized network with public
accountability, the simple act of broadcasting your alias allows
for a compounding effect of time on the value of trust. A strong
brand relies on consistent and honest performance over time.
Running a node permits you to build that brand and immediately
illustrate dedication to customer security, customer privacy,
Bitcoin, and a long time preference.” All of this is nice and
makes sense, but there’s something missing. The biggest alpha in
the whole Voltage article is only slightly related to branding.
It’s a sneaky piece of information that makes all the sense in the
world. “This brand display on the Lightning Network is a passive
and effective means of showing support for Bitcoin. As the
cryptocurrency space continues to grow more muddled and diverse,
having a public statement in support of any one coin can become
divisive. Running a node on the Lightning Network does not require
any words to be spoken or any announcement to be made.” Some
companies can’t afford to be bitcoin-only, and that’s ok. However,
if you want to avoid divisiveness, actions speak louder than words.
Spin up that node and make a silent statement. The people in the
know will hear your message loud and clear. That’s branding for
you. BTC price chart for 06/22/2022 on Eightcap | Source: BTC/USD
on TradingView.com Early Adopters Building Trust As we told you,
the other factor here is time. “Strong brands require the humbling
reality that time in the public eye building trust is the key to
success. Early adopters compound this value of time to dominate a
market,” Voltage says. Spinning up a node is the easy part, to earn
the trust to open channels with other nodes takes time and effort.
As all branding does. “Time-building trust within this
network compounds through the availability of capital allocation.
The Lightning Network rewards time and the building of trust by
increasing the amount of traffic through the establishment of more
channels. Rewards that leverage the network effect weigh the value
of time heavily.” In any case, one thing’s for sure: the time to
act is now. For most companies, the Lightning Network is uncharted
territory. It could become the primary way to send value over the
bitcoin network, though. “The tremendous upside potential of
building a strong brand in this uncongested space comes at the low
expense of creating a node and capitalizing on time,” Voltage
says. Related Reading | Lightning Speed: Open-Source Bitcoin
Banks’ Fee Structures For Inbound Liquidity It might make sense for
your brand to claim terrain in the Lightning Network, in case it
catches on. Featured Image by Keila Hötzel on Unsplash | Charts by
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