Jack Dorsey may have just stepped down as the CEO of Twitter (NYSE:TWTR), but he remains a very busy entrepreneur. The tech magnate is still the CEO of Block (NYSE:SQ), which started rebranding from Square just days after his Twitter resignation. The company’s name change is officially slated for Dec. 10 and the rebrand indicates exactly where Dorsey’s head is for the future — blockchain technology. Now, SQ stock is getting a boost from the company’s new product demo; the Lightning Development Kit (LDK) is flexing its robust development of crypto products thus far.
Block is the new name for Square, the company which has come to investors’ attention through both its Dorsey founding and its suite of fintech products like fast-payment tool Cash App. It points to an increased company focus on blockchain technology and cryptocurrency. The rebrand also comes alongside another rebrand of the company’s crypto division, Spiral. Most recently, Spiral put forth a new piece of content showing just what it has been doing for the last few years.
Specifically, the Spiral team published a video demonstrating its incoming Lightning Development Kit product. Two components comprise the video: a Q&A with the development team and a series of skits showing a puppet version of Dorsey utilizing the LDK.
The Lightning Development Kit is meant to help build on the presence of the Lightning Network. This network was created in 2015 and released in full in 2016. It is meant to build on the Bitcoin (CCC:BTC-USD) ecosystem by integrating peer-to-peer transactions.
SQ Stock Rises After Block’s New LDK Demonstration Shows a World with Seamless Bitcoin Payment
Spiral’s LDK product will make the Lightning Network more accessible than ever. The video shows off capabilities and explains a bit about how it works. The result? A bump in SQ stock values this morning.
The developers’ Q&A helps to break down the LDK to a microscopic level. They get into the nitty gritty of what slows down Bitcoin transactions on-chain and in turn leads to higher transaction fees. The video also does a great job of framing these highly technical answers and jargon into a big picture idea. Thus, even the least-experienced of blockchain users can get just what the LDK does.
In essence, Spiral’s incoming LDK will allow any developer to create their own Bitcoin wallet on the Lightning Network. This will allow seamless BTC transactions to become more and more ubiquitous. Puppet Jack Dorsey goes on to illustrate these ideas, instantly transacting Bitcoin phone-to-phone. The video parodies Dorsey’s intense fascination with the future of Bitcoin; it also plays on the billionaire’s signature styles like his nose ring, which the puppet doppelgänger also receives. The puppet pays for the fashion statement using the Lightning Network.
This educational and quite humorous demonstration shows exactly the types of products Block is focusing on after its rebrand. Investors are getting quite excited, too; SQ stock is popping this morning with the video’s release. As we approach the afternoon, SQ is up around 6% on today’s session. Transaction volumes are trending higher than normal as well; over 6.5 million shares are swapping hands thus far against a daily average of about 7.5 million.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
