The highly anticipated non-custodial Boltz exchange is now live. This Lightning Network enabled platform is a next-generation exchange that offers clients the ability to trade crypto without the need of an account. The exchange represents a break from the current trend of exchanges requiring more customer information. Additionally, the platform is open-source.
Boltz represents an evolution in crypto exchanges. The platform is easy to use and integrates the Lightning Network directly into its protocol. Users can take advantage of Lightning Network features such as submarine swaps. Submarine swaps are cross chain exchanges. Currently, you can submarine swap BTC and LTC on this platform.
Speaking on the decision to integrate the Lightning Network, Boltz developers explained how the relationship is beneficial to both parties. Boltz gained speed and functionality, while the Lightning Network noticed an increase in inbound capacity across lightning channels.
Starting in mid-2017, many of the largest exchanges, such as Coinbase, began requiring clients to verify their identity. This decision caused a huge stir in the cryptocommunity for a number of reasons. For one, clients were often not notified of the newly enacted requirements prior to their release. Also, exchanges began to lock up clients funds that were unable to provide the newly required information.
Say No to Accounts
The creative development team behind Boltz believes you shouldn't need an account to trade crypto. This exchange is set to take on market leaders such as ShapeShift, who started requiring all customers to provide additional identification earlier in the year. This decision was after ShapeShift claimed that the regulations were not to be mandatory.
Interestingly, Boltz is a non-custodial exchange. Non-custodial exchanges differ from their traditional counterparts in that they do not require users to load an exchange wallet to start trading. Instead, users send their funds directly from their personal wallets at the time of exchange. There are some huge advantages to this type of exchange.
Non-custodial exchanges greatly reduce the amount of risk faced by traders. Large exchanges make for great targets for hackers because their centralized positioning creates large pools of crypto. In a non-custodial arrangement, these large crypto stashes don't exist. Thereby eliminating the financial gains any would be hacker could expect.
Another advantage of non-custodial exchanges is the fact that there are no withdrawal delays. Custodial exchanges require you to prefill your trading wallet. Once you are done trading, you need to withdraw your funds to your personal wallet. In many instances, this withdrawal period can extend for hours, or even days, depending on the exchange and current market conditions. These delays can hinder a trader's ability to react to the market conditions quickly.
All those interested in trying out this next level exchange can do so today. The Boltz platform is in its Alpha testing stage. Consequently, you can only trade BTC and LTC at the moment. However, you are able to trade both Lightning Network BTC and traditional BTC on the platform in its current status.