Bitlum, a startup building products/services on top of the Lighting Network has announced the alpha version of ZigZag, a crypto assets exchange platform based on the Lightning Network.
ZigZag enables ten-second asset exchanges with no user registration required and avoids the typical high blockchain fees by leveraging the power of payment channels.
The team’s plans for ZigZag is to facilitate a growing shift from users currently experiencing a centralized exchange model for their asset transfers, to a decentralized model.
First, Bitlum will focus on solving the problem of high fees and long wait times by focusing on integration with lightning network wallets and increasing the active user base. Eventually, Bitlum aims to enable trustless exchange when cross-chain atomic swaps are available.
In later development phases, Bitlum will look to become a Lightning Network payment provider while developing the tools and mechanisms for managing funds locked in payment channels.
The ZigZag platform will also allow external investors to earn money by locking their funds into its payment channel provider.
The Lightning Network is an open P2P network for instant payments, supporting cryptocurrencies such as Bitcoin, Litecoin, and Ethereum, and does not require delegating custody of funds or trust to third parties.