Zigzag Allows Users to Swaps Cryptocurrency Over the Lightning Network
New exchange Zigzag.io allows users to swap BTC for other digital assets like BCH, DASH, and ETH over the Lightning Network. The beta application is currently available to test cryptocurrency trades as the project launched on the main-network during the 1st week of September.
Lightning Network Trading
New platform launched by Zigzag.io provides a digital currency trading system that utilizes the Lightning Network (LN) for exchanges. The Zigzag exchange only needs two cryptocurrency addresses to complete the process, and it doesn’t require any KYC data. The open source project enables users to swap coins by making a payment with any LN wallet to the exchange similarly to the way Shapeshift works.
Users of Zigzag exchange need to send coins with the LN enabled wallets like Zap, Eclair, Lightning, or Htlc.me clients. The beta version only allows a maximum exchange of US$100 per trader for now. Since the application is in beta if something goes wrong the team has created a refund system. The team plans on designing a custodial wallet service where people can deposit BTC, BCH, DASH, ETH, and LTC and trade without having any prior LN knowledge in future. The developer’s blog states: We highly appreciate the work of Lightning Network community. But there are still people out there for whom Lightning Network is hard to use, we think to introduce more people to Lightning there has to be a way to try it free of any technical expertise.
Another Lightning Exchange Service
Zigzag team developers said they got a lot of feedback and feature requests from the community. Since then, Zigzag programmers have added reverse exchanges to the application. Two other requests they have not implemented yet was adding new trading assets and lifting the exchange cap of $100. The team says they do plan to add more coins in the future, but it is not a primary focus. They emphasized that the move to lift the $100 trading cap is a bit trickier due to the maturity of the Lightning Network. This is a tricky question as Lightning Network is still in beta, we’re also still in beta, we also need to clarify legal part of our service, so for now we’re keeping limits low.
There’s also another open source LN exchange known as Sparkswap that provides traders with the ability to exchange cryptocurrencies using LN technology and atomic cross-chain swaps. The Zigzag exchange and Sparkswap platform announced their platforms around the same time. Zigzag was developed by Andrey Samokhvalov and Denis Khvostov and the application’s users can give the exchange operators feedback using the developer Slack channel. There’s been a slew of new trading platforms launching recently and testing out different trading techniques. Moreover, lots of cryptocurrency enthusiasts are in search of trading platforms that don’t use KYC.