Just lately, Flashnet introduced that it had raised a $4.5m seed spherical, led by Summary Ventures with participation from UTXO Administration 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 Trade) CEX with not one of the custody.
Spark allows on the spot 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 handle 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 attempting to enhance LN as an alternative of attempting 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” alternate right here?
From the documentation obtainable, right here’s how Flashnet would work:
When a consumer locations a restrict or market order, they ship funds to an MPC (Multi-Social gathering Computation) pockets, the place the consumer, the alternate, and a set of validators act as signers. Funds within the MPC pockets are usually 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 preserve funds within the MPC pockets to keep away from the necessity for a Spark transaction for every order, during which case they grow to be 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 consumer’s intent to match with the counterparty order, guaranteeing {that a} restrict order for 100 BTC is just 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 via its native atomic swap mechanism. Belief is just required through the temporary interval between matching and settlement, which lasts just a few milliseconds. Moreover, customers can unilaterally exit the MPC at any time utilizing Spark’s unilateral exit characteristic, offering an additional layer of safety.RFQ presents 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 additionally pushes Bitcoin’s ecosystem in the direction of higher adoption and utility, showcasing why the resurgence of funding in Lightning-adjacent applied sciences is a optimistic 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 particularly could focus on matters or firms which are a part of his agency’s funding portfolio (UTXO Administration). The views expressed are solely his personal and don’t characterize the opinions of his employer or its associates. He’s receiving no monetary compensation for these Takes. Readers shouldn’t think about this content material as monetary recommendation or an endorsement of any specific firm or funding. All the time do your individual analysis earlier than making monetary choices.
