Innovative Blockchain Initiatives: UBI and Lightning Network Growth

The Republic of the Marshall Islands has launched the world's first blockchain-based universal basic income (UBI), utilizing the Stellar blockchain. According to CoinDesk, the initiative, developed with the Stellar Development Foundation and Crossmint, allows eligible citizens to receive quarterly payments via a custom digital wallet app called Lomalo.

Payments are based on the US dollar-denominated sovereign bond, USDM1, which is fully backed by short-term U.S. Treasury bills. The government aims to provide about $200 per person per quarter to help alleviate cost of living pressures.

As noted by The Guardian, this program is part of a broader effort to support the population of around 42,000, as many residents choose traditional payment methods over cryptocurrency due to limited internet connectivity.

Meanwhile, the Lightning Network, a layer-2 solution for Bitcoin, has seen significant growth, reaching a capacity peak of 5,637 BTC, valued at approximately $490 million, as reported by Cointelegraph.

Major exchanges like Binance and OKX are increasing their Bitcoin deposits on the network, contributing to this capacity surge. Additionally, the recent upgrade of Taproot Assets aims to enhance the functionality of the Lightning Network, facilitating stablecoin transactions over Bitcoin while ensuring transparency in asset supply.

With the Marshall Islands' UBI initiative and the Lightning Network's growth, both represent innovative uses of blockchain technology aimed at improving financial accessibility and transaction efficiency.