Just lately, Flashnet announced that it had raised a $4.5m seed spherical, led by Summary Ventures with participation from UTXO Management and others.
Flashnet is a Bitcoin native DEX based mostly on Spark (a Bitcoin L2 designed between the Flashnet group and LightSpark). It’s designed to rival the efficiency of a (Centralized Change) CEX with not one of the custody.
Spark permits instantaneous and limitless self-custodial transactions of Bitcoin and tokens whereas additionally enabling customers to ship and obtain natively through Lightning. It is open-sourced and secured by Bitcoin. Spark was constructed to deal with Bitcoin and Lightning’s remaining challenges, specializing in scaling self-custody wallets and enabling stablecoins on Bitcoin.
I’m personally a fan of current L2 proposals like Ark or Spark making an attempt to enhance LN as an alternative of making an attempt to interchange it. Having this burgeoning scaling ecosystem opens up the design area for one thing nice — obsoleting Uniswap and bringing all of the charges to Bitcoin. That is why I’m so adamant concerning the utility of Bitcoin Finance (BTCfi) for Bitcoin.
In fact, the query stays, are we actually speaking a few “Decentralized” trade right here?
From the documentation obtainable, right here’s how Flashnet would work:
- When a person locations a restrict or market order, they ship funds to an MPC (Multi-Get together Computation) pockets, the place the person, the trade, and a set of validators act as signers. Funds within the MPC pockets should not claimed till a match is made, much like how approvals work in Ethereum. For market makers and high-volume actors, there’s an choice to maintain funds within the MPC pockets to keep away from the necessity for a Spark transaction for every order, by which case they develop into validators, incurring a bit extra belief.
- The MPC pockets receives signed maker/taker orders to settle trades and provoke fund dispersals. All validators should agree on the person’s intent to match with the counterparty order, guaranteeing {that a} restrict order for 100 BTC is barely legitimate if the counterparty order matches or exceeds 100 BTC. This intent is understood due to the user-signed orders submitted at order placement.
- All trades are settled immediately and atomically on Spark by its native atomic swap mechanism. Belief is barely required throughout the transient interval between matching and settlement, which lasts only some milliseconds. Moreover, customers can unilaterally exit the MPC at any time utilizing Spark’s unilateral exit function, offering an additional layer of safety.RFQ provides are additionally obtainable for wallets, mining swimming pools, and platforms, enabling customers to request quotes from market makers for seamless BTCToken swaps.
This improvement not solely enhances Lightning but in addition pushes Bitcoin’s ecosystem in direction of higher adoption and utility, showcasing why the resurgence of funding in Lightning-adjacent applied sciences is a constructive signal for Bitcoin’s future.
This text is a Take. Opinions expressed are totally the creator’s and don’t essentially replicate these of BTC Inc or Bitcoin Journal.
Guillaume’s articles specifically might focus on matters or corporations which can be a part of his agency’s funding portfolio (UTXO Management). The views expressed are solely his personal and don’t symbolize the opinions of his employer or its associates. He’s receiving no monetary compensation for these Takes. Readers shouldn’t contemplate this content material as monetary recommendation or an endorsement of any explicit firm or funding. At all times do your personal analysis earlier than making monetary choices.
