How can you leverage the Lightning Network to promote your brand? Does that seem possible? Voltage, which is a Bitcoin infrastructure provider makes a compelling case. Granted, their “Lightning Network Identity and Branding” article is in itself a branding effort by the company. That doesn’t mean the information it contains is invalid, though. They probably got it right.
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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. Another factor is time. Businesses that get their branding started now will reap the best benefits later.
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. Participants have the unique chance to make minimal efforts to realize a significant upside to their potential value, despite rapid growth. 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, but your company will have to keep it up forever to earn the trust it’s looking for.
The Branding Process: 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 solid brand is built on honest and consistent performance. 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. Branding is the most important alpha of Voltage’s article. 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. It can be divisive to make a public support for any coin as the crypto space becomes more complex and varied. 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. But actions are more powerful than words if you wish to avoid division. You can spin that node to make a quiet statement. People in the know will pick up your message. That’s branding for you.
Source: BTC/USD on TradingView.com| Source: BTC/USD on TradingView.com
Early Adopters Building Trust
Time is the second factor. “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. While setting up a node can be easy, it takes effort to gain trust and open channels with other networks. Like all branding.
“Time-building trust within this network compounds through the availability of capital allocation. Lightning Network is a network that rewards trust and time by increasing traffic via 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. The Lightning Network remains unexplored territory for most businesses. However, it could be the main way for bitcoin users to transfer value. “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.
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In the event that it does catch on, your brand might want to claim your territory in Lightning Network.
Featured Image by Keila Hötzel on Unsplash | Charts by TradingView