• Latest
Pantera Leads $3.5 Million Round for Lightning-Powered Sparkswap DEX

Pantera Leads $3.5 Million Round for Lightning-Powered Sparkswap DEX

April 8, 2019
6 Questions for Rene Reinsberg of Celo – Cointelegraph Magazine

6 Questions for Rene Reinsberg of Celo – Cointelegraph Magazine

March 31, 2023
Judge denies SEC motion to keep Hinman docs secret in Ripple case

Judge denies SEC motion to keep Hinman docs secret in Ripple case

March 31, 2023
The ultimate guide to Miami – Cointelegraph Magazine

The ultimate guide to Miami – Cointelegraph Magazine

March 31, 2023
Dr. Jane Thomason – Cointelegraph Magazine

Dr. Jane Thomason – Cointelegraph Magazine

March 31, 2023
1658007797 celsius is bankrupt with 12b balance sheet hole su zhu.jpg

Celsius is bankrupt with $1.2B balance sheet hole, Su Zhu returns to Twitter and OpenSea purges 20% of employees: Hodler’s Digest, July 10-16

March 31, 2023
6 Questions for Lisa Fridman of Quadrata – Cointelegraph Magazine

6 Questions for Lisa Fridman of Quadrata – Cointelegraph Magazine

March 31, 2023
Jed McCaleb empties XRP wallet after eight-year selloff

Jed McCaleb empties XRP wallet after eight-year selloff

March 31, 2023
Celsius has finally filed for bankruptcy: Law Decoded, July 18-25

Celsius has finally filed for bankruptcy: Law Decoded, July 18-25

March 31, 2023
The ‘godfather of crypto’ risked lifetime in jail, laying foundation for Bitcoin – Cointelegraph Magazine

The ‘godfather of crypto’ risked lifetime in jail, laying foundation for Bitcoin – Cointelegraph Magazine

March 31, 2023
SEC objects to XRP holders aiding Ripple defense

SEC objects to XRP holders aiding Ripple defense

March 31, 2023
Blockchain technology is transforming the real estate market – Cointelegraph Magazine

Blockchain technology is transforming the real estate market – Cointelegraph Magazine

March 31, 2023
1658612147 nfts banned in minecraft sec lists 9 tokens as securities.jpg

NFTs banned in Minecraft, SEC lists 9 tokens as securities and 3AC founder blames cockyness for company meltdown: Hodler’s Digest, July 17-23

March 31, 2023
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Tech

Pantera Leads $3.5 Million Round for Lightning-Powered Sparkswap DEX

coinnewsdaily by coinnewsdaily
April 8, 2019
in Tech
0
Pantera Leads $3.5 Million Round for Lightning-Powered Sparkswap DEX
191
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable

Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable

May 25, 2022
Central African Republic to launch official crypto hub ‘Sango’

Central African Republic to launch official crypto hub ‘Sango’

May 24, 2022

A San Francisco-based decentralized exchange (DEX) called Sparkswap launched Monday, becoming the first North American exchange to fully integrate the lightning network, a bitcoin scaling solution.

Sparkswap is funded by a $3.5 million seed round led by Pantera Capital, with involvement from venture capital firms such as Initialized Capital and Foundation Capital. This lightning-powered DEX – which differentiates itself from traditional exchanges by requiring users to custody their own crypto – offers cross-chain atomic swaps between bitcoin and litecoin.

Explaining how these off-chain lightning trades work, Sparkswap co-founder Trey Griffith told CoinDesk:

“Our users download some open source software we’ve developed that includes widgets and LND, the lightning implementation, along with a wallet that can hold, in this case, litecoin and bitcoin. When they trade, they talk to a service that we run called a relayer, that broadcasts an intent to trade at a specific position … then other users can take the other side of that trade by communicating with the relayer.”

Due to the experimental nature of the nascent lightning network, Sparkswap imposed a $2,500 daily trading limit for the first few months, with plans to raise the limit and add more trading pairs in the near future.

Brett Gibson, a partner at Initialized Capital, told CoinDesk that Sparkswap was the first startup he’s seen that offers traders self-custody without sacrificing speed.

“[It has] the performance and other characteristics of a decentralized exchange [but] can perform like a centralized one,” he said.

Fellow investor Paul Veradittakit from Pantera Capital added that Sparkswap caught his eye because it’s one of the few DEX startups to focus, albeit not exclusively, on bitcoin rather than ethereum-based tokens.

“Institutional traders want speed, efficiency, optionality and security,” Veradittakit told CoinDesk. “I think if lightning [developers] continue to execute and provide scalability and cross-chain atomic swaps … [lightning] should be able to fulfill that promise of speed and efficiency.”

However, there’s a long road ahead before those lightning-enabled trades can be implemented on a wider scale.

Timing is everything

Griffith will be the first to admit that Sparkswap plans to observe user behavior and develop mechanisms to address lightning’s current limitations. This Sparkswap release is still in beta.

One of the key issues Sparkswap will need to address is what happens if one party pulls out of a trade mid-way because the price fluctuates during the process.

Lightning Labs engineer Alex Bosworth, who works on the LND implementation that Sparkswap leverages, told CoinDesk it’s not clear yet whether the technology will be consistently faster than fully centralized processes.

“If you actually look at the script, it says that it could happen instantly but it could also take longer,” Bosworth said. “You still have an issue of timing with the cross-chain swaps. This is a problem for making this into a service that works with a lot of money.”

To complicate matters, there is also a cultural gap between the institutional traders Sparkswap seeks to serve and the capabilities lightning currently offers. Many such traders swap millions of dollars worth of cryptocurrency at a time, not just a couple thousand, and they often do so with pre-determined partners.

“Just from a business perspective, I know that a lot of trading that happens on exchanges is actually done through contracts and trust,” Bosworth said. “I actually see the industry going in a more trusted direction.”

Despite these challenges, Bosworth is optimistically curious to see how lightning channels add additional value throughout the trading process.

Growing the network

According to Griffith, Sparkswap’s offering for professional traders could impact the broader economics of the lightning network.

For example, imagine you’re a bitcoin standing in line at Disneyland to ride Splash Mountain. If you’re closer to the front of the line, then you have more value than a bitcoin farther back – or a bitcoin in another line for a less popular ride. Just as with amusement park lines, there is positional value with crypto in payment channels.

“If I have a channel that’s in a good position directed toward a high-value target, it’s worth more to me than bitcoin that is just sitting in a cold wallet, because I can earn money on it,” Bosworth said.

Speaking to how this applies to Sparkswap, technically Sparkswap wallets can be used to send payments to anyone using the lightning network, mirroring payment options offered by centralized exchanges like Zebpay. As such, Sparkswap users could become high-value participants in the broader network.

“Our application could help the lightning network grow both in terms of tools and in users,” Griffith said, adding:

“An application like Sparkswap could really push lightning toward higher transaction uses. Most of the uses of the lightning network today are microtransactions and this could help support bigger transactions.”

Indeed, according to bitcoinvisuals.com, the average lightning channel capacity is currently less than $200.

In addition to boosting the lightning network’s capacity for bitcoin, Griffith said Sparkswap plans to explore ways for the exchange to integrate support for stablecoins and ethereum-based assets as well.

“Our approach of using cross-chain swaps on lightning or cross-chain swaps on payment channel networks allows us to maximize interoperability,” Griffith said.

Sparkswap founding team (left to right, Bradley Stachurski, Trey Griffith, Danny Pazuchowski and Martine Ehrlich) image courtesy of the company

Credit: Source link

Tags: Crypto Tech
Share76Tweet48
Previous Post

Societe Generale-Owned Bank Launches Blockchain ETN

Next Post

Western Union Integrates With Crypto Wallet to Expand Philippines Remittances

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable
Tech

Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable

May 25, 2022
Central African Republic to launch official crypto hub ‘Sango’
Tech

Central African Republic to launch official crypto hub ‘Sango’

May 24, 2022
South Korean police request exchanges freeze LFG related funds
Tech

South Korean police request exchanges freeze LFG related funds

May 24, 2022
Bitcoin stands apart from other crypto, and what that means for US public policy
Tech

Bitcoin stands apart from other crypto, and what that means for US public policy

May 22, 2022
Needed: A massive education project to fight hacks and scams
Tech

Needed: A massive education project to fight hacks and scams

May 21, 2022
Commonwealth Bank puts crypto trading trial on ice as regulators dither
Tech

Commonwealth Bank puts crypto trading trial on ice as regulators dither

May 20, 2022
Load More
Next Post
Western Union Integrates With Crypto Wallet to Expand Philippines Remittances

Western Union Integrates With Crypto Wallet to Expand Philippines Remittances

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • 6 Questions for Rene Reinsberg of Celo – Cointelegraph Magazine
  • Judge denies SEC motion to keep Hinman docs secret in Ripple case
  • The ultimate guide to Miami – Cointelegraph Magazine
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$28,570.000.50%
  • ethereumEthereum(ETH)$1,825.960.07%
  • tetherTether(USDT)$1.010.22%
  • binancecoinBNB(BNB)$315.64-0.13%
  • rippleXRP(XRP)$0.51-5.32%
  • cardanoCardano(ADA)$0.396318-1.68%
  • dogecoinDogecoin(DOGE)$0.0832778.78%
  • matic-networkPolygon(MATIC)$1.110.17%
  • solanaSolana(SOL)$21.171.20%
  • polkadotPolkadot(DOT)$6.330.18%
  • shiba-inuShiba Inu(SHIB)$0.0000116.43%
  • litecoinLitecoin(LTC)$92.873.63%
  • tronTRON(TRX)$0.0666731.17%
  • daiDai(DAI)$1.000.17%
  • chainlinkChainlink(LINK)$7.56-1.16%
  • cosmosCosmos Hub(ATOM)$11.503.76%
  • leo-tokenLEO Token(LEO)$3.39-2.36%
  • ethereum-classicEthereum Classic(ETC)$21.353.17%
  • stellarStellar(XLM)$0.109614-1.79%
  • moneroMonero(XMR)$156.29-0.53%
  • okbOKB(OKB)$41.73-0.29%
  • bitcoin-cashBitcoin Cash(BCH)$125.831.68%
  • filecoinFilecoin(FIL)$5.802.25%
  • crypto-com-chainCronos(CRO)$0.0690460.29%
  • vechainVeChain(VET)$0.0234860.42%
  • algorandAlgorand(ALGO)$0.223604-0.48%
  • internet-computerInternet Computer(ICP)$5.240.75%
  • eosEOS(EOS)$1.19-0.92%
  • theta-tokenTheta Network(THETA)$1.084.44%
  • elrond-erd-2MultiversX(EGLD)$42.550.06%
  • aaveAave(AAVE)$74.542.08%
  • tezosTezos(XTZ)$1.130.98%
  • neoNEO(NEO)$12.43-0.30%
  • havvenSynthetix Network(SNX)$2.572.60%
  • paxos-standardPax Dollar(USDP)$1.000.05%
  • bitcoin-cash-svBitcoin SV(BSV)$36.080.47%
  • pancakeswap-tokenPancakeSwap(CAKE)$3.731.10%
  • dashDash(DASH)$58.921.25%
  • makerMaker(MKR)$695.581.26%
  • iotaIOTA(MIOTA)$0.2234564.20%
  • huobi-tokenHuobi(HT)$3.660.72%
  • zilliqaZilliqa(ZIL)$0.0312067.80%
  • basic-attention-tokenBasic Attention(BAT)$0.2741492.91%
  • zcashZcash(ZEC)$38.09-2.84%
  • nemNEM(XEM)$0.0406692.49%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • qtumQtum(QTUM)$3.141.41%
  • kusamaKusama(KSM)$33.95-2.97%
  • compound-governance-tokenCompound(COMP)$43.591.43%
  • yearn-financeyearn.finance(YFI)$8,771.770.73%
  • bitcoin-goldBitcoin Gold(BTG)$16.191.38%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.2459852.59%
  • omisegoOMG Network(OMG)$1.56-0.97%
  • ontologyOntology(ONT)$0.2439224.58%
  • wavesWaves(WAVES)$2.141.69%
  • sushiSushi(SUSHI)$1.09-0.14%
  • digibyteDigiByte(DGB)$0.0099263.32%
  • umaUMA(UMA)$2.142.46%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%