Lightning Network Branding Opportunities, A Guide
Using the Lightning Network for branding? Is that even possible? Voltage, a provider of bitcoin infrastructure, makes a good case for it. Admittedly, their “Identity and Brand on the Lightning Network” article is in itself a branding effort by the company. However, that does not mean that the information it contains is invalid. In fact, they probably hit the nail on the head with this one.
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The company’s CEO, Graham Krizek, is the author of the piece. “One of the interesting things about the Lightning Network is that as a node operator you have a billboard (an alias) to advertise your node with. The alias is a human-readable and changeable value that people interacting with your node can see,” he says 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 explain to Voltage what their thesis is about:
“The Lightning Network is still in the Innovator to Early Adopter phase of the Adoption S-Curve. Despite the rapid growth, participants still have the unique opportunity to unleash great upside potential with minimal effort. By creating a node in less than 2 minutes, businesses and individuals can have a stake in the Lightning Network and use it to build distinctive brands.”
The keywords here are “minimum effort” and “less than 2 minutes”, but don’t let Voltage fool you. Setting up a node can be an easy and inexpensive branding effort. However, your company will have to last forever to earn the trust it seeks.
Branding in time and space
The fact is that if bitcoin becomes what it should be, the companies that have supported the network from the start will get a major branding boost.
“As a decentralized network with public responsibility, the simple act of broadcasting your alias has a greater effect of time on the value of trust. A strong brand relies on consistent and fair performance over time. Running a node allows you to build that brand and exemplify an immediate commitment to customer safety, customer privacy, Bitcoin, and a long-time preference.
This is all nice and logical, but something is missing. The biggest alpha in the entire 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 way to show support for Bitcoin. As the cryptocurrency space becomes more and more confused and diverse, having a public statement in support of a single coin could be divisive. Running a node on the Lightning Network requires no words or announcements.”
Some businesses can’t afford to be just bitcoin, and that’s okay. However, if you want to avoid division, actions speak louder than words. Flip that node up and make a silent statement. Those in the know will hear your message loud and clear. That’s branding for you.
BTC price chart for 6/22/2022 on Eightcap | Source: BTC/USD on TradingView.com
Early adopters build trust
As we told you, the other factor here is time. “Strong brands need the humbling reality that time in the public eye building trust is the key to success. Early adopters amplify this value of time to dominate a market,” Voltage says. Starting a node is the easy part, gaining the confidence to open channels with other nodes takes time and effort. Like all brands do.
“Time-building trust within this network is enhanced by the availability of capital allocation. The Lightning Network rewards time and trust building by increasing traffic by setting up more channels. Rewards that leverage the network effect weigh heavily on the value of time.”
In any case, one thing is certain: now is the time to act. For most companies, the Lightning Network is uncharted territory. However, it may become the primary means of transmitting value over the bitcoin network. “The huge upside of building a strong brand in this non-congested space comes at the cost of creating a node and capitalizing on it in time,” Voltage says.
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It may make sense for your brand to claim territory in the Lightning Network, in case it catches on.