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 primarily based on Spark (a Bitcoin L2 designed between the Flashnet staff and LightSpark). It’s designed to rival the efficiency of a (Centralized Trade) 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 by way of 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 latest L2 proposals like Ark or Spark making an attempt to enrich LN as a substitute of making an attempt to switch 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. Because of this I’m so adamant concerning the utility of Bitcoin Finance (BTCfi) for Bitcoin.
In fact, the query stays, are we actually speaking a couple of “Decentralized” trade right here?
From the documentation out there, 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 trade, and a set of validators act as signers. Funds within the MPC pockets aren’t 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, wherein case they turn out 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 simply 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 simply required throughout the transient 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 function, offering an additional layer of safety.RFQ presents are additionally out there for wallets, mining swimming pools, and platforms, enabling customers to request quotes from market makers for seamless BTCToken swaps.
This growth not solely enhances Lightning but additionally pushes Bitcoin’s ecosystem in the direction of better 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 fully the creator’s and don’t essentially replicate these of BTC Inc or Bitcoin Journal.
Guillaume’s articles specifically could talk about matters or corporations which can be a part of his agency’s funding portfolio (UTXO Administration). The views expressed are solely his personal and don’t signify the opinions of his employer or its associates. He’s receiving no monetary compensation for these Takes. Readers mustn’t take into account this content material as monetary recommendation or an endorsement of any explicit firm or funding. All the time do your individual analysis earlier than making monetary selections.
