The developers of Bitlum reported the launch of the alpha version of ZigZag, a crypto exchange based on the Lightning Network protocol. As the project team promises, ZigZag will provide 10-second operations for the exchange of assets without the need for registration, while the use of payment channels will avoid high transaction fees.
— Bitlum (@Bitlumio) 10 января 2018 г.
The vision of the company is to provide a gradual transition from the model of centralized exchanges to decentralized solutions. This model is designed to meet the growing demand and solve user problems, which often face problems when exchanging crypto assets.
Bitlum plans to split its strategy into several stages. At the first stage, the team will focus on solving the problems of high commissions and long time confirmation of transactions. Also work will be done to integrate LN-purses, increase the user base of nodes, increase security and overall stability of the service.
At this stage, the company notes, users will have to trust it as a third party when transferring funds to recipient addresses. Bitlum intends to eliminate this mediation as soon as atomic exchanges between assets are available.
The second phase of the platform development assumes that ZigZag will become a full-fledged provider of payment channels of the Lightning Network. Also at this stage, it is expected to develop internal tools for managing funds in the payment channels.
In addition, ZigZag will offer external investors the opportunity to earn money by depositing their funds in payment channels and partially solving the problem of the bandwidth of the channels.
At the third stage, the Bitlum team expects that a sufficient number of payment channels and tools to connect to the platform to manage these channels will allow it to concentrate on experiments with atomic swaps and eliminate the need to act as a third-party trust.