Ether on Lightning is the latest Bridge Crossing Crypto gap
Ethereum developers are using the Lightning payment network to build bridges in the bitcoin ecosystem.
The company-backed Radar Relay encryption startup, best known for its decentralized exchange (DEX) relays for 0x, has just launched a service called RedShift, which allows people to pay a lightning bill from an ethereum wallet .
Radar product leader Brandon Curtis told CoinDesk:
“There are some people who want to be bitcoin maximalists or just work on ethereum stuff.” But I think there is a large silent majority of us who are interested in multiple chains, in multiple assets, and we want to build things that unite them. “
Users of the MetaMask wallet with a browser widget can simply add a second widget to their browsers and paste a lightning bill into the ethereum wallet, such as a normal wallet address. In the back-end, Radar will exchange the ether for bitcoin and manage the channels so that the recipient receives the payment in bitcoin. This widget will eventually connect the user to a group of market makers beyond the radar, Curtis said, and will also work for other ethereum-based tokens.
“Our number one application for DEX users and market makers was somehow adding the ability to trade bitcoin,” said Curtis. “Bitcoin has more liquidity and only many holders, users, much interest.”
Radar can see the movement as a competitive differentiator, as it competes for its use in the DEX space. Currently, IDEX and Kyber Network are the leading DEX in terms of trading volume, according to Etherscan statistics
Radar is now among a handful of projects that work to connect several cryptocurrency ecosystems.
In fact, the Cross-Chain Working Group is already building a system for wrapped bitcoin tokens that can be used in the ethereum blockchain. In addition, Electronic Coin Company is working on bridges for zcash to the ethereum network, according to ECC’s vice president of marketing, Josh Swihart.
Similarly, Arwen CEO Sharon Goldberg told CoinDesk that his atomic exchange service (startup’s atomic swap) and startup settlement for centralized exchanges such as KuCoin now offers ethereum mainnet capabilities.
“You can take some bitcoin, buy some ETH and make that agreement without losing custody,” he said. “The way we do it is free of any third party. We have no pins or the complexity we see in some of the other projects. Actually, it is introducing a new counterparty risk with that kind of thing.”
Whether startups focus on side chains, lightning or other layered protocols such as Arwen, Curtis de Radar said Bitcoin is still the best form of crypto money, due to open questions about how the ethereum project will be developed. However, from their perspective, bridges that allow bitcoin value flows from more experimental assets can add more value to the bitcoin ecosystem by opening it to new users.
“Right now, the hardest part of lightning is the incorporation process,” Curtis said, adding:
“With tools like RedShift, we can allow people who already have digital assets to access the lightning network without all that configuration”.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.