A brand new type of exchange has hit the market as Sparkswap, the first ever exchange built on Lightning Network Atomic swaps, announced on April 8, 2019, that their beta is live on the mainnet.
Live and Launched
It is indeed unfortunate, but exchange hacks have become much too commonplace in the crypto industry and one seems to take place every few weeks.
This year alone has seen several high profile hacks such as Cryptopia and DragonEx where millions of dollars of customers funds were stolen. The recovery process for hacks can take months and in some cases, the victims aren’t compensated for their loss.
However, a new crypto exchange has popped up that offers customers a way to trade their tokens without the risk of them being stolen. In an April 8, 2019 blog post, Sparkswap announced that they have launched their beta product on their mainnet.
“After months of hard work, I’m excited to announce that Sparkswap, the first cryptocurrency exchange built on Lightning Network Atomic Swaps is live for trading on MainNet in its Public Beta,” the post said.
Swapping in Safety
While new crypto exchanges open every day, Sparkswap is the only exchange in the world that is built on Lightning Network Atomic Swaps.
As the announcement pointed out, Sparkswap offers users a way to trade without giving up any of the control of their assets and being exposed to theft or loss. Also, users are able to trade across blockchains and have their trades settled within seconds. This, they say, will allow non-custodian trading to compete favorably with custodian trading since speed will not need to be sacrificed in order to retain control of assets.
The first ever mainnet Lightning Network Atomic swap was conducted by the Sparkswap team on January 2, 2019, just a day before Bitcoin’s 10th birthday. This is the technology that enables the fast yet safe trading of assets that Sparkswap promises its customers and according to Sparkswap, is proof of the Lightning Network’s maturity.
While they are already launched on the mainnet, transaction sizes will be limited for now and will also be limited only to BTC/LTC pairs.
The launch of Sparkswap was made possible after $3.5 million was raised in seed capital from Initialized Capital, Pantera Capital, Foundation Capital, and Y Combinator.