Bitlum.io is a company that builds applications for the Bitcoin Lightning Network, which is a peer-to-peer network designed for instant payments for cryptocurrencies such as Bitcoin, Etherium, and Litecoin. By combining different cryptocurrencies in one network, Lightning Network enables the execution of decentralized exchanges.
How Bitlum ZigZag Exchange Works
The main feature of Bitlum is its main app, the ZigZag, which is a crypto asset exchange platform based on Lightning Network. This enables the platform to perform ten-second asset exchanges with no user required. Besides, this typically avoids high blockchain fees witnessed in some payment channels.
The plan is to facilitate a growing shift from users currently using a centralized model for their asset transfers to a much more decentralized platform. Bitlum focuses on solving the problems of high transfer fees and long wait time by focusing their integration with wallets on the Lightning Network.
In essence, it makes users have their hard-earned cryptocurrency in one network for easy and less costly transactions. While having the coins in one place, it is possible to exchange it easily for no additional charges whatsoever.
The vision of ZigZag is to meet the growing needs and to solve headaches for those exchanging crypto assets and adjusting their plans accordingly. Their plans are divided into parts for 3 phases to have the users accustomed to their application.
Their first objective is to solve the problems of high fees and long wait time of cryptocurrency exchange, by applying various payment channels. To achieve that, the exchange of funds shall require the user to trust them to pass the funds on to the target and destination address.
Bitlum will focus on becoming a Lightning Network payment provider and will be developing internal tools and mechanisms for managing the funds locked in the payment channels. They are also planning to have their investors earn money by locking their funds on ZigZag’s payment channel provider, thereby partially solving the problem of channels capacity.
In having a sufficient number of payment channels connected to ZigZag and tools for managing the payment channels, they will focus on experimenting with atomic swaps and elimination of trust required of them by the users.
When Will Bitlum ZigZag Exchange Deliver?
Currently, Bitlum ZigZag Exchange is in its alpha stage and they are looking for users to help start testing their application. This includes general feature feedback, GraphQL API implementation feedback, bug reports, and UI/UX suggestions. Other ways to help them with the project include:
- Helping them test with their alpha by joining Slack
- If you are a wallet provider looking for a third party to integrate with, ZigZag would love to speak with you, please join their Slack and introduce yourself in the “introduction” channel
- If you are an individual developer interested in their work, you can send your application on [email protected]
- If you are an investor interesting in this, and you are interested in investing in the development of this project, you can contact them at [email protected]
This is a very great project and a great opportunity for active cryptocurrency traders and investors alike. The idea behind it is to help people have lightning-fast transactions with no overcharged fees by using payment channels as their payment methods.