A new way of trading Bitcoin and digital currency has come. SparkSwap is the first cryptocurrency exchange based on the Lightning Network. Here, users can complete bitcoin and other cryptocurrency transactions in a few seconds, without the need to deposit assets in a third party.

Cross-chain cryptocurrency transactions are completed in seconds, and the first Lightning Network exchange SparkSwap comes out

Trey Griffith, founder of SparkSwap, said:

You can trade between different blockchains (currently only Bitcoin and Litecoin are supported), and the settlement time is within 1 second-completely the same as the trading time of a centralized cryptocurrency exchange.

In this industry, sometimes many people seem to only value hype and white papers, but there are not many really feasible software. We are committed to the latter. Currently our software is still in the testing phase, but we have successfully completed BTC and LTC transactions on the Bitcoin and Litecoin testnets.

SparkSwap is mainly divided into two parts. The first part is Broker, which is software run by users. It can transform user behavior into network behavior. Broker can also exchange payment channel networks and manage user wallets and private keys.

The second part is Relayer, which is managed by employees. This part connects brokers who are interested in cryptocurrency swap transactions; guarantees the normal update of orders; and reduces the risk of fraud and market manipulation. Relayer can also help users reach an agreement on swap prices and conduct transactions in payment channel networks such as the Lightning Network, thereby achieving the effect of gradually removing third parties.

Griffith explained:

With SparkSwap, you no longer have to rack your brains to choose a trading pair with faster settlement and more liquidity, and you can also have absolute control over your assets. Your assets will no longer be affected by exchange theft or loss of funds.

Some cryptocurrency enthusiasts believe that the Lightning Network is only related to Bitcoin, and now it seems wrong to think so. The transaction between Bitcoin and other altcoins has always been a process called atomic swaps. In this process, if two parties need to conduct a transaction between Bitcoin and an altcoin at the same time, they need to submit two transactions: one on the Bitcoin blockchain and the other on the corresponding altcoin On the blockchain.

In the transaction process, after one party sends bitcoins to the other party, he needs to share a string of "secret numbers" so that the other party can obtain these bitcoins on the chain. This series of secret numbers also allows both parties to obtain the coins they want on their respective blockchains, so as to prevent any party from committing fraud.

Although this process is feasible, it does not mean that there is no problem. Therefore, the existence of the Lightning Network can optimize atomic swaps. The Lightning Network can connect not only two blockchains, but also payment channels, allowing multiple parties to conduct transactions in a trustless environment.

The Lightning Network can also send transactions between different blockchain platforms, allowing cryptocurrency to change hands off-chain. In this trustless environment, transactions between cryptocurrencies will not be recorded on a specific blockchain.

Last year, Charlie Lee, the founder of Litecoin, said:

The atomic swaps I have experienced before are all on-chain, the transaction speed is very slow, and the handling fee is relatively high. The off-chain atomic swap is much better. This process is instant, the handling fee is very low, and privacy can be better protected.

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