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Earn 6.9% APY staking with Solana Compass
Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 6.9% APY yield on your SOL, while supporting us to create new guides and tools.
Breakpoint 2023: Solatening
Introducing Solatening, a new cross-chain DEX enabling Solana-based payments through the Bitcoin Lightning Network in Amsterdam.
At Breakpoint 2023, Adam and Sylvie introduced Solatening, a pioneering development in the cryptocurrency space: a fully trustless, cross-chain decentralized exchange (DEX) that bridges Bitcoin and Solana, allowing users to make instant payments and swaps between the two. Amidst the vibrant cityscape of Amsterdam, the founders demonstrated the practical applications of Solatening, showcasing how it can be used for day-to-day transactions like buying coffee. They expounded on the seamless nature of transactions, the security of the underlying technology, and the trustless nature of the swaps—highlighting the significance of such features in the post-FTX era.
Solatening: Bridging Bitcoin and Solana
Solatening emerged as an innovative solution to enable payments with Solana in places where only Bitcoin is accepted, particularly through the Bitcoin Lightning Network, which is already quite prevalent. Adam and Sylvie highlighted Solatening’s role in bridging the two significant cryptocurrencies, allowing for fast and trustless payments and swaps. This new use case simplifies transactions by allowing Solana holders to pay at Bitcoin Lightning-enabled merchants seamlessly.
The Practical Demonstration
The co-founders of Solatening shared their personal experience using the platform. They described the process of paying for coffee at a local café in Amsterdam, utilizing the Solatening DEX through their Phantom wallet. The demonstration highlighted the speed and ease of the transaction, underscoring the potential of Solatening to bridge the gap between different blockchain ecosystems and bring about greater adoption of cryptocurrency in daily commerce.
Trustless Cross-Chain Swaps
Adam explained the technicality behind the trustless cross-chain swaps. He showcased two different ways to swap between Bitcoin and Solana: via the Bitcoin Lightning Network for lower-value, quick swaps, and using on-chain transactions for larger trades. The importance of trustless exchanges was stressed, especially in the wake of failures of centralized entities like FTX. Adam also gave a live demo of the swapping process on their DEX.
Facts + Figures
- Solatening is a fully trustless cross-chain DEX between Bitcoin and Solana.
- It enables users to make payments or swaps using Solana at merchants that accept Bitcoin through the Lightning Network.
- Solatening can facilitate both small and large value trades.
- It uses a smart contract vault on Solana and a liquidity provider on the Bitcoin side to secure transactions.
- The technology does not rely on multi-sig or an honest majority, instead securing swaps with Bitcoin's proof of work and Solana's smart contracts.
- The DEX interface is similar to Uniswap's and allows for ease-of-use in transactions.
- "What if there would be a way to hijack bitcoin lightning to actually pay with solana pay? Well, there is. It is Solatening."
- "This is the first fully trustless cross-chain DEX between Bitcoin and Solana that can be used for either payments or swaps."
- "It's a very seamless experience, super quick. We just got out our phantom wallet, opened the Solatening DEX."
- "So yeah, finally, mission pay for our coffee with Solana Pay in Amsterdam accomplished."
- "I probably don't need to explain to you why we need trustless solutions to do swaps."
- "The swap is fully trustless and it's secured actually by the Bitcoin's proof of work and the atomic swaps for lightning."
How does Solatening facilitate payments in Solana where only Bitcoin is accepted?
Solatening is a cross-chain DEX that converts Solana (SOL) into Bitcoin transactions instantly, allowing Solana users to make payments at establishments that only accept Bitcoin via the Lightning Network.
Can Solatening be used for both small and large value trades?
Yes, Solatening supports both small and large value trades. The Bitcoin Lightning Network is used for lower-value, faster transactions, while on-chain transactions are recommended for higher-value trades.
Why is a trustless system like Solatening important?
Trustless systems like Solatening are critical because they eliminate the risk associated with relying on centralized entities, which may be vulnerable to failures or malpractices, as witnessed with companies like FTX.
What technical mechanisms secure the transactions between Solana and Bitcoin on Solatening?
Transactions are secured through the use of smart contract vaults on the Solana blockchain and liquidity providers on the Bitcoin side, with the transparency and security of Bitcoin's proof of work and atomic swaps for the Lightning Network.
How user-friendly is the Solatening interface?
The Solatening interface is designed to be very user-friendly, following a model similar to Uniswap, which should be familiar to those who have interacted with other DEX platforms. This facilitates a seamless experience for users during swaps or payments.
- Key Points:
- Facts + Figures
- Top quotes
- How does Solatening facilitate payments in Solana where only Bitcoin is accepted?
- Can Solatening be used for both small and large value trades?
- Why is a trustless system like Solatening important?
- What technical mechanisms secure the transactions between Solana and Bitcoin on Solatening?
- How user-friendly is the Solatening interface?