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Sparkswap raises $3.5 million to build a crypto exchange on Bitcoin Lightning Network

Akash Anand

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Sparkswap raises $3.5 million to build a crypto exchange on Bitcoin Lightning Network
Source: Pixabay

2019 saw multiple attacks on crypto exchanges, many of which resulted in the loss of millions. In a bid to check such cases, Sparkswap, is planning to launch a cryptocurrency exchange using the features of the Bitcoin Lightning Network.

Terry Griffith, Founder of Sparkswap, was recently successful in acquiring $3.5 million in solid funding from institutional players like Pantera Capital, Initialized Capital, and Foundation Capital. Griffith stated,

“They’re just frustrated by the fact that it takes weeks to pull their money out. By building Sparkswap on Lightning Network Atomic Swaps, we can get performance and currencies needed to build liquid markets without giving up control of your assets.”

At the moment, the cryptocurrency exchange only supports BTC-LTC trading pairs, with the company also planning to enable the addition of assets like ZCash and Ethereum [ETH]. The company also gave a detailed breakdown of how users can make use of Sparkswap’s features,



“A market maker first downloads and runs Sparkswap’s software
The maker then deposits litecoin or bitcoin into their respective wallets and connects to an order-book system managed by Sparkswap
The maker broadcasts their order to Sparkswap
Sparkswap connects the maker’s order to a market taker who wants to fill that order
Both traders execute their trades using Atomic Swaps”

Sparkswap also admitted that the firm’s initial targets are semi-professional to professional traders who have a keen interest in making their own custom trading software.

Although the Lightning Network has drawn a lot of positive attention over the months, it still has its critics. Peter R Rizun, the Chief Scientist of Bitcoin Unlimited, had recently claimed that users on the LN can lose all their assets, for no fault of their own. He tweeted,

“A Lightning user can lose all of their money through no fault of their own, in an environment with high and volatile L1 fees. BTC’s block size limit ensures high and volatile fees whenever demand for block space spikes.”





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Bitcoin

Bitcoin [BTC]: Andreas Antonopoulos breaks down life cycle of a transaction on the BTC blockchain

Akash Anand

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Bitcoin [BTC]: Andreas Antonopoulos breaks down the life cycle of a transaction on the BTC blockchain
Source: Pixabay

Bitcoin [BTC] and its intricacies have been a concept that many users in the cryptoverse have been trying to understand since its inception. In his latest video, Andreas Antonopoulos, a major Bitcoin bull and the author of Mastering Bitcoin, elucidated on the life cycle of a wallet transaction from start to finish.

Antonopoulos stated that from the point someone sends a transaction from a wallet to its confirmation on the Bitcoin blockchain, the wallet constructs a transaction by accumulating the BTC in the user’s wallet and assigning the addresses. The user’s wallet then transmits the transaction’s information to one of the many nodes it is connected to, from where it can be sent to ‘1, 2 or even 8 other nodes’. He added:

“The transaction is then transmitted to other nodes, which can be mining nodes, e-commerce payment gateways, and many such options. Each of those nodes will receive the transaction from your node and each of those, in turn, will validate every single transaction. When the nodes receive the transactions, they don’t’ know whether it was created by you or was forwarded and hence each of these transactions need to be validated individually.”

Antonopoulos went on to state that if all the nodes are validated, ie. if the payment details are correct and if it is confirmed that no double spend has occurred on the blockchain, then eventually through the process of ‘flood propagation’, the transaction information will be sent to every other node, out of which some may be mining nodes. In his words:



“Once the transaction reaches the mining pool, it maintains a pool of unconfirmed transactions, like a bucket where all this unconfirmed data is stored. This is the pool known as the mempool. Also, know that there isn’t THE mempool rather there is ‘A’ mempool. Information in separate mempools can be in a 99 percent overlap but there will never be a case where it will completely similar.”

According to the author, the mempool also serves the purpose of providing transaction for a miner to add a new block after which ‘the race is on’ for the next block. Miners usually have to construct a block and then solve the Proof of Work on it to eventually make it a confirmed block. Antonopoulos claimed that once the block is made, the information will be sent to the mining equipment to solve the PoW on that particular block and probably after a “billion hashes” the miners will find the block. The Bitcoin bull elucidated on the information transfer back by saying:

“Once the PoW is solved, the mining node will propagate the node back the same way as it received. The nodes validate the block on the way back and once all the nodes confirm its validity, then the user’s wallet will know that there is a confirmation on the transaction. That is the entire life cycle of a transaction.”





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