The post Lightning Companies Are Raising Again: This Is Good for Bitcoin appeared on BitcoinEthereumNews.com.

Recently, Flashnet announced that it had raised a $4.5m seed round, led by Abstract Ventures with participation from UTXO Management and others. Follow GG on X Flashnet is a Bitcoin native DEX based on Spark (a Bitcoin L2 designed between the Flashnet team and LightSpark). It’s designed to rival the performance of a (Centralized Exchange) CEX with none of the custody. Spark enables instant and unlimited self-custodial transactions of Bitcoin and tokens while also enabling users to send and receive natively via Lightning. It’s open-sourced and secured by Bitcoin. Spark was built to address Bitcoin and Lightning’s remaining challenges, focusing on scaling self-custody wallets and enabling stablecoins on Bitcoin. I’m personally a fan of recent L2 proposals like Ark or Spark trying to complement LN instead of trying to replace it. Having this burgeoning scaling ecosystem opens up the design space for something great — obsoleting Uniswap and bringing all the fees to Bitcoin. This is why I’m so adamant about the utility of Bitcoin Finance (BTCfi) for Bitcoin. Of course, the question remains, are we really talking about a “Decentralized” exchange here? From the documentation available, here’s how Flashnet would work: When a user places a limit or market order, they send funds to an MPC (Multi-Party Computation) wallet, where the user, the exchange, and a set of validators act as signers. Funds in the MPC wallet are not claimed until a match is made, similar to how approvals work in Ethereum. For market makers and high-volume actors, there’s an option to keep funds in the MPC wallet to avoid the need for a Spark transaction for each order, in which case they become validators, incurring a bit more trust. The MPC wallet receives signed maker/taker orders to settle trades and initiate fund dispersals. All validators must agree on the…

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Filed under: News - @ February 6, 2025 7:20 pm