A ‘state-of-art’ exchange has been introduced in the cryptocurrency industry. Live and launched, Sparkswap, is the first ever exchange built on Lightning Network Atomic swaps. Sparkswap, an exchange with backing from Pantera Capital (which announced its ambitious mission to become the most decentralized bitcoin exchange on the market in August 2018), has now opened its beta to users.
With increasing number of exchange hacks in crypto space, such an exchange has been the need of hour. It has become very common that one hack seems to take place in every 2-3 weeks. In 2019 itself, several high profile hacks such as Cryptopia and DragonEx where millions of dollars of customer’s funds were stolen. And the recovery process for hacks can take months and in some cases, the customers are rarely compensated for their loss.
The new crypto exchange is set to offer customers a way to trade their tokens without the risk of them being stolen. Sparkswap is live for trading on MainNet in its Public Beta. Among all the crypto exchanges in the world, Sparkswap is the only exchange in the world that is built on Lightning Network Atomic Swaps. It allows users to trade without sacrificing any of the control of their assets and being exposed to theft or loss. Moreover, users can now trade across blockchains and have their trades settled within seconds. This is set to give way to non-custodian trading that would compete with custodian trading since speed will not need to be sacrificed in order to retain control of assets.
Sparkswap has also announced its Seed Round of US$ 3.5 million from Initialized Capital, Pantera Capital, Foundation Capital, and Y Combinator. The Lightning Network Atomic swap is the technology that enables the quick yet secure trading of assets and is the proof of the Lightning Network’s maturity. Though assets are are already launched on the mainnet, transaction sizes will be limited for now and will be limited to BTC/LTC pairs only.
To access the exchange, users need to download the exchange’s open-source software named Sparkswap Broke. It includes a kit that has everything needed to bootstrap a Bitcoin and Litecoin full node, along with Bitcoin and Litecoin Lightning nodes for running payment channels. Currently, the inaugural users of exchange cannot leverage their own Lightning nodes or custodial Lightning services.
On this occasion, Griffith Sparkswap, Founder of Sparkswap Trey, stated that the new crypto exchange will only feature a bitcoin and litecoin trading pair, and would feasibly support other atomic swap-friendly cryptocurrencies like decred, vertcoin or komodo. The exchange will later accommodate many other cryptocurrencies, including beyond Bitcoin Script-based projects; and will further accommodate other payment channel networks that may not be compatible with the Lightning Network.
Introduced in 2018, the Lightning Network is growing substantially and attracting increased developer activity. Though it’s still in the infancy of its construction, it is evolving fast with technical solutions, wallets and services proliferating, and community initiatives like the Lightning Torch.