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26 tweets,
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:1: Hashflow Network (launching soon)
an ETH:BTC layer 2 scaling solution for exchanges, wallets, and users
🏁Speed and scalability of centralized exchanges 🏁
🔐Non-custodial risk of dexes 🔐
💰Cash-flow profits for its workers 💰
a thread 👇
an ETH:BTC layer 2 scaling solution for exchanges, wallets, and users
🏁Speed and scalability of centralized exchanges 🏁
🔐Non-custodial risk of dexes 🔐
💰Cash-flow profits for its workers 💰
a thread 👇
:2: Decentralized exchanges (dexes) remove custody risk for users but are slow and can be gamed.
Centralized exchanges are fast but hackable and present systematic risk to the market.
Hashflow is a L2 solution for ETH:BTC that solves these problems.
Centralized exchanges are fast but hackable and present systematic risk to the market.
Hashflow is a L2 solution for ETH:BTC that solves these problems.
:3: The introduction of Hashflow is incredibly important IMO due to its focus on the most important trading pair and blockchains (ETH:BTC).
These blockchains will benefit from the interoperability and more cross-chain financial products.
These blockchains will benefit from the interoperability and more cross-chain financial products.
:4: Hashflow uses Ethereum smart contracts and credit-lightning channels that replaces the need to lock $btc into a channel locks with proof-of-solvency.
All of this is done while paying network workers (Watch Towers = wallet providers + Hubs = Exchanges) with $HFT.
All of this is done while paying network workers (Watch Towers = wallet providers + Hubs = Exchanges) with $HFT.
:5: Credit-lightning is essentially an alternative to the capital inefficient requirement to lock $BTC into Lightning Channels. Credit-Lightning enables nodes to route payments while also proving solvency.
Proof-of-solvency = proof of liabilities + proof of reserves
Proof-of-solvency = proof of liabilities + proof of reserves
:6: The cryptocurrency community has been pushing centralized exchanges to implement proof-of-solvency for a while.
@nic__carter has championed the proof-of-solvency narrative.
Hashflow implements this proof-of-solvency while also removing exchanges from the custody equation.
@nic__carter has championed the proof-of-solvency narrative.
Hashflow implements this proof-of-solvency while also removing exchanges from the custody equation.
:7: As usual, @NickSzabo4 was ahead of the curve in the Spring 2018 calling for the types of innovation Hashflow Network provides.
:8: Interestingly, traditional stock exchanges solve for the problem of centralized crypto exchange with a member-owned company called DTCC (Depository Trust & Clearing Corporation).
:9: In the 1970’s DTCC-like orgs were created to digitize paper stock certificates + remove the need to transfer paper certificates b/ exchange members. At the time, paper certificates were regularly being lost in the mail (📩).
In 1999 these orgs consolidated to form DTCC.
In 1999 these orgs consolidated to form DTCC.
:10: Hashflow mirrors the idea of DTCC by separating custody from centralized exchanges to decrease hacker risk while replacing the need for a DTCC-like org with the Hashflow Network.
:11: Read: Hashflow Network is a mash-up of the best of centralized exchanges (1.0) + dexes (2.0).
Hashflow Network enables the next iterations of exchanges by creating a new class of exchanges, Exchanges 3.0.
Interestingly, CEX's would benefit most by integrating.
Hashflow Network enables the next iterations of exchanges by creating a new class of exchanges, Exchanges 3.0.
Interestingly, CEX's would benefit most by integrating.
:12: You can launch an exchange on Hashflow very quickly b/c you no longer need to worry about custody, deposits, and withdraws. Hashflow-enabled exchanges only need a fast order matching engine for high-frequency traders (a nod to $HFT token).
:13: I have been watching the ETH:BTC narratives for most of 2019.
:14: tBTC's launch is part of the same ETH:BTC movement to enable cross-chain transactions and financial products between Bitcoin and Ethereum networks while removing the need for middlemen.
:15: Hashflow compliments products like tBTC and iterates on tools built by @_prestwich and summa.one to bring the same ethos of scaling without compromises. Trust no one with your bitcoin and ether.
Not your keys. not your coins.
Not your keys. not your coins.
:16: Hashflow’s name comes from @ricburton who wrote a great article last year on all of the "hashflow" opportunities to earn cash-flow as a network worker.
I had a lot of fun helping Richard in the article b/c we were both deep down the on-chain cash-flow rabbit hole.
I had a lot of fun helping Richard in the article b/c we were both deep down the on-chain cash-flow rabbit hole.
17: As an aside, @GandalfTheBr0wn (creator of Hashflow) met Richard in a hot tub. 🤣
@GandalfTheBr0wn 18: Here is the white paper to learn more about Hashflow Network.
hashflow.network/docs/Hashflow_…
hashflow.network/docs/Hashflow_…
:19: What is that you say? You hate white papers?
Lucky for you Hashflow Network is already built!
Varun (@GandalfTheBr0wn) stuck himself in a cave for the past year to build it. The network is being audited as I tweet [rocketship]. Mainet launch and APIs to follow.
Lucky for you Hashflow Network is already built!
Varun (@GandalfTheBr0wn) stuck himself in a cave for the past year to build it. The network is being audited as I tweet [rocketship]. Mainet launch and APIs to follow.
:20: If you have any questions about Hashflow, just ask Varun (@GandalfTheBr0wn) all about it. He’s in SF and I can make email intros if helpful.
Lots of origin stories and reading material can be found here, as well.
medium.com/hashflow
Lots of origin stories and reading material can be found here, as well.
medium.com/hashflow
:22: That is it. Hashflow, one of my favorite projects in the space right now for three reasons:
1 - Focus on ETH:BTC
2 - Better, safer, more scalable exchange infrastructure as we move towards v3.0 of exchanges
3 - Hashflow = on-chain cashflow = money!
1 - Focus on ETH:BTC
2 - Better, safer, more scalable exchange infrastructure as we move towards v3.0 of exchanges
3 - Hashflow = on-chain cashflow = money!
