Recently, Flashnet announced that it had raised a round of $ 4.5 million led by Abstract Ventures with the participation of UTXO management and others.
Flashnet is a Bitcoin -Inborn DEX based on kicks (a Bitcoin L2 designed between the flashnet team and light kick). It is designed to compete with the performance of a (centralized exchange) CEX with none of the custody.
Spark enables immediate and unlimited self -defense transactions of Bitcoin and tokens, while also allowing users to send and receive naturally via lightning. It is open sourced and secured by Bitcoin. Spark was built to address Bitcoin and Lightning’s remaining challenges, focusing on scaling self -insurance wallets and enabling stablecoins on Bitcoin.
I personally am a fan of recent L2 proposals such as sheets or kicks trying to supplement LN instead of trying to replace it. Having this budding scaling ecosystem opens the design room for something big – outdated uniswap and brings all fees to Bitcoin. That’s why I’m so firm at the utility of Bitcoin Finance (BTCFI) to Bitcoin.
Of course, the question is still, are we really talking about a “decentralized” exchange here?
From the available documentation, here is how flashnet would work:
- When a user places a limit or market order, they send funds to an MPC (multi-party calculation) wallet where the user, exchange and a set of validators act as signatories. Funds in the MPC design book are not claimed until a match has been concluded, similar to how approvals work in Ethereum. For market manufacturers and actors with high volume, there is an opportunity to keep money in the MPC cargo book to avoid the need for a spark transaction for each order, in which case they become validators who incur a little more confidence.
- The MPC design book receives signed maker/taker orders to settle trades and initiate fund spread. All validators must agree on the user’s intention to match with the counterparty order, ensuring that a limit order for 100 BTC is only valid if the counterparty order matches or exceeds 100 BTC. This intention is known because of the user -signed orders submitted on order placement.
- All trades are run immediately and atomic on the spark through its original nuclear mechanism. Trust is only required in the short interval between matching and settlement that lasts only a few milliseconds. In addition, users can unilaterally leave MPC at any time using Spark’s one -sided exit function, providing an additional layer of security.RFQ offers are also available for wallets, mining and platforms, allowing users to request offers from Market manufacturers for seamless BTCTOKEN -Swaps.
This development not only complements lightning, but also pushes Bitcoin’s ecosystem towards greater adoption and utility, which shows why the resurgence of investment in lightning technologies is a positive sign for Bitcoin’s future.
This article is one Take. Opinions expressed are completely the author’s and does not necessarily reflect BTC Inc or Bitcoin magazine.
Especially Guillaume’s articles can discuss topics or companies that are part of his company’s investment portfolio (UTXO management). The expressed views are solely his own and do not represent the statements of his employer or its affiliated companies. He receives no financial compensation for these taking. Readers should not consider this content as financial advice or endorsement of a particular business or investment. Always do your own research before making financial decisions.