Finance invaded by Bitcoin – LN Clear, the Lightning Network of options?admin, · Categories: Bitcoin
In the pages of Journal du Coin, we occasionally try to highlight the developments of ambitious projects that want to build the foundations of a new bitcoin-centric economy. And among these projects, there is naturally LN Markets … But the entrepreneurs behind this crypto-trading platform built on top of Bitcoin’s Lightning Network have another idea behind their heads, and announced it yesterday: LN Clear. LN… What?
Bitcoin is just the beginning
The announcement fell yesterday, during the day, on the occasion of the traditional Lightning Network oriented newsletter sent by the company Bitcoin Rush to curious bitcoiners : LN Markets plans to diversify , and to aim higher than the simple platform of leverage in trading (endearingly crazy , but terribly traitors !).
To do this, the entrepreneurs behind the project plan to launch a new product, LN Clear . Késako? One project based infrastructure developed for LN Markets, to allow to sellers and buyers of different derivatives financial … and have them agree to the negotiations and cases settled instantly , thanks to the Lightning Network .
Head full of projects
In order to be able to manage these derivative products and their “future flows” , LN Clear proposes to “remove the counterparty risk that is usually found on historical financial markets” , explains Romain Rouphaël , co-founder of LN Markets. How? ‘Or’ What ? By relying on private payment channels , open on the Lightning Network . Recall that the Lightning Network payment channels consist of funds jointly sequestered on the original Bitcoin blockchain , using so-called multisig transactions.. Thus, on the Lightning Network, the funds in transit can be transferred instantly , since they have already been locked on the Bitcoin blockchain .
LN Clear acts as an intermediary for the various parties, but with everything happening on the LN.
If LN Markets caters to all followers of trading of bitcoins , LN Clear is therefore “a different audience” , says Rouphael: First, the crypto-friendly investors already present on the market (in the manner of some hedge funds located in the cryptosphère), but above all – eventually – the traditional institutional investors … even the financial markets themselves. And to do this, LN Clear will first take the route of Bitcoin-backed derivatives , which will be tradable in OTC.(by mutual agreement ) by an informed public . Naturally, as Mr. Rouphaël reminds us, “there is major work that we are carrying out in terms of compliance and regulation” , specific to the target audience.