Yes, you heard it right! This brand new exchange doesn’t ask for KYC. Boltz is a new Bitcoin exchange which is based on the lightning network. The exchange has been launched, and it won’t ask its customers about their personal information and would rather allow them to swap BTC and LTC with the help of LN or the cross-atomic chain swaps.
According to the reports obtained from bitcoinist.com, it is a “new instant, account free, and non-custodial digital asset exchange.” The crypto exchange’s feature of being ‘account free’ is quite surprising and based on the recent history, it seems like it too will succumb to the compulsion of the exchanges to surrender to regulations and thus making KYC a mandatory factor. For instance, last year Shapeshift had to surrender to the mandatory compulsions of regulations.
Surprisingly though, Boltz claims to be not among such exchanges. On its official website, the new-age crypto exchange pointed out that when a customer creates an account on a KYC custodial crypto exchange, he or she is basically giving information about your crypto assets to the government or the organization in the power. Moreover, the customer is also at the risk of his or her crypto exchange being seized during a trade. Therefore, Boltz came up with “instant, account free and non-custodial” crypto exchange platform. The exchange claims that it–
“does not and will never collect any data that could identify our users.”
The lightning network is highly efficient in providing quicker and much cheaper transactions. But like any other network, it too has its own challenges. In combination with Boltz, these challenges get surpassed very easily, and the crypto exchange acts as a catalyst between the two layers with cross-atomic chain swaps. This makes all the lightning network chain transactions work smoothly and offer far better user experience to the user. The transactions that take place on the chain thus support the growth of the Lightning network.
As of now, the crypto exchange Boltz is available for alpha-testing. The user can exchange between BTC and LTC in both Lightning and non-Lightning ways. The user of the platform can use the inbound capacity on the lightning route currently. For merchants who need outbound transactions too along with the inbound transactions, it can be a bit of a challenge. Without the graphical user interface, Lightning Labs’ Lightning Loop also offers similar services.
Boltz is not the only one in the account free exchanges zone. Another such free minded crypto exchange is ZigZag.io. As of now, ZigZag.io is in the beta-testing stage. The user can exchange from BTC lightning to BTC, LTC, DASH, and ETH and likewise backward. The exchange also supports Bitcoin Cash BCH, although it is not currently available on the platform. The user can exchange payments off the chain. Boltz currently has atomic swaps, but ZigZag.io is still to achieve this status in order to on the trust-minimisation factor like Boltz.
Both Lightning Network and Boltz are quite new in the market. With their revolutionary ideas and new age thinking, they definitely seem to attract a lot of attention. How much will they be able to stand the test of time, only time can tell. Mass adoption of these two will quite change the landscape of the crypto sphere.