This week, a savvy developer by the name of Fiatjaf announced the release of a new hybrid cryptocurrency known as Etleneum. Etleneum combines the smart contract capabilities of Ethereum with the speed and efficiency of the Lightning Network. Importantly, the news represents further capabilities for users of this revolutionary second-layer protocol.
Interestingly, the name Etleneum is a combination of Ethereum and the Lightning Network. The developer even took his concept one step further by making the logo an Ethereum diamond with a lightning bolt shooting through the center of it. Similar to traditional Ethereum, Etleneum is an open-source protocol that incorporates easy smart contract functionalities. Smart contracts are automated protocols set to trigger upon the receival of preset amounts of crypto
Discussing the unique mashup, Fiatjaf spoke on how most people assume he created some sort of “decentralized trustless smart contract platform on Lightning.” While this would be a very interesting concept indeed, he notes that it would probably be impossible to complete such a task due to the structure of the Lightning Network.
Ethereum vs Etleneum
One of the main differences between Etleneum and Ethereum comes in the form of centralization. Unlike Ethereum, Etleneum functions as a centralized cryptocurrency. Fiatjaf explains that there are inherent limitations to decentralized platforms. As such, he believes his hybrid could fill an important niche in the market.
Fiatjaf described how his new crypto allows two or more parties to “run some arbitrary code to determines the distribution of a certain amount of funding.” Unlike most of today’s popular cryptocurrencies, Fiatjaf’s system utilizes a trusted third-party to ensure the transaction goes smoothly.
Fiatjaf also took a moment to lay out some examples of business systems functioning in the fiat realm in a similar manner. Specifically, he listed Google AdSense as an example of this style of business system in action. With Google AdSense, a user agrees to receive a certain amount of payment per click. Importantly, these fixed contracts are exclusive to those operating within the Google AdSense ecosystem.
Fiatjaf’s system would allow for a more open market because it enables developers to make these options available to all users, not just registered users. This strategy could prove to be extremely profitable for a number of reasons. For one, fiat payments do not lend well to random selection. They require companies to adhere to a strict verification process. In some instances, this requires a person to live in a certain region or provide their banking information.
Discussing why he chose to utilize Ethereum for his project, Fiatjaf explained that Ethereum already is semi-centralized. He cited instances where smart contracts written on the platform offer back door emergency shutoffs in case the discovery of a programming bug. Consequently, the world’s second-largest cryptocurrency was perfectly suited for his new product.
Etleneum officially entered the market back in November of last year. Since that time, the concept managed to secure around 200 registered users. These users conducted 1200+ transactions to date. Importantly, Fiatjaf sees a scenario in which Etleneum will gain huge market adoption in the coming months due to its unique structuring. For now, Etleneum serves as another example of the creativity and entrepreneurial spirit that lives on in the crypto realm.