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Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

news.ycombinator.com

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Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#41

Post by arcticbull »

nullc wrote: post #36
arcticbull wrote: post #28

Earlier quoted context omitted.

> Do you really believe the "coins of today" are going to stand the test of time as hardware gets more powerful in the next decade? Bitcoin sure, because it actively gets less efficient as computers get more efficient. The only thing that'll stop it getting less efficient is a grey-goo like scenario where it consumes all the world's power. Or, I guess, if we run out of leading zeroes.

I'm surprised to see this misunderstanding persist today, though it was one I frequently saw in 2010/2011. Bitcoin's mining difficulty automatically adapts both up and down to keep blocks at roughly 10 minutes, whatever the offered resources are. It doesn't monotonically become more difficult.

Of course, I never meant that it couldn't get easier. It just won't for as long as there's demand for it. As long as there's money to be made in mining, resources will be thrown at it. As more resources are thrown at it, it gets less efficient. As resources improve, it becomes less efficient. The only thing that would allow it to get more efficient is if nobody cares anymore, as happened across the lions share of 2018.

Nothing about this graph suggests we should expect anything else [1]. The perceived misconception seems more like a technicality :)

[1] https://www.blockchain.com/en/charts/difficulty?timespan=all

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#42

Post by 40four »

zallarak wrote: post #16

Wow, this was seamless. It auto-detected my lightning wallet, and the purchase was instant. As far as I know, this is literally the only way to get Bitcoin on lightning directly with USD.

I have had good experience buying bitcoin through Square Cash app. It can then immediately be sent to the walet of my choosing.

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#43

Post by 40four »

This looks promising. Looking forward to trying it out! I do wish there was more information on the website about how it works, fees etc.

I am admittedly a crypto currency novice, so I'm not real familiar with the lightning network and how it works. I am curious how your product differs from the Bitcoin feature on Square Cash app?

I have had a good experience buying Bitcoin with USD from Square. It's fast, there is no fee (although they pad the price a little bit), and I can then immediately send the coins to the wallet of my choosing.

Seems like your product is very similar. Are there any major differences? What are the reasons to use your app and not keep buying from Square?

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#44

Post by BubRoss »

lawn wrote: post #30

> for the first time, you can have fast, convenient trading without custodial trust. Really? From your description it sounds like I would have to trust Sparkswap and some other unknown bank with my fiat. > In just the first half of 2019, almost $500M^3 was stolen from custodial exchanges. And why would you be immune to this? > product that solves a real problem What problem? To buy LN coins instead of Bitcoins?

These are valid questions, not sure why you are being downvoted.

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#46

Post by ruigomes »

Congrats on the launch Trey! I'm very excited for the future of Sparkswap and the Lightning Network ecosystem.

Shameless plug: I've built a platform that showcases apps that are powered by the Lightning Network.

Most of them are experiments with instant settlements and micropayments, but it should give you a good idea why you should care about Lightning: https://www.lapps.co

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#47

Post by tg3 »

40four wrote: post #43

This looks promising. Looking forward to trying it out! I do wish there was more information on the website about how it works, fees etc. I am admittedly a crypto currency novice, so I'm not real familiar with the lightning network and how it works. I am curious how your product differs from the Bitcoin feature on Square Cash app? I have had a good experience buying Bitcoin with USD from Square. It's fast, there is n…

The product is very similar to the Square Cash app. The main difference is that when you buy Bitcoin with Sparkswap, the Bitcoin goes instantly (and without paying on-chain fees) into a wallet for which you hold the private keys (rather than a company holding the keys on your behalf). And that Bitcoin is available for spending on the Lightning Network.

The downside is that you have to be comfortable being responsible for the keys, which not everyone is.

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#48

Post by [deleted] »

40four wrote: post #43

This looks promising. Looking forward to trying it out! I do wish there was more information on the website about how it works, fees etc. I am admittedly a crypto currency novice, so I'm not real familiar with the lightning network and how it works. I am curious how your product differs from the Bitcoin feature on Square Cash app? I have had a good experience buying Bitcoin with USD from Square. It's fast, there is n…

[deleted]

Re: Launch HN: Sparkswap (YC S18) – Buy Bitcoin Instantly over the Lightning Network

#50

Post by d-d »

freediver wrote: post #38

So I need to trust 1.AnchorUSD 2.Their trust company where escrow is held 3.Zap for lightning network wallet 4.Abacus for identity verification 5.and you (sparkswap) I'd say this is neither direct nor instant (just abacus verification adds crazy friction). And the trust issue is real, I'd personally feel better with one large custodial institution than a number of startups in this chain that I know nothing about (or…

> I'd say this is neither direct nor instant

You're correct in other ways as well:

The "lightning" network (heh) still requires slow Bitcoin transactions to initiate and close. And it's between two trusted parties anyway, so this negates the need for a trustless network like Bitcoin.

A far better "lightning network" has existed for many years. It's called a shared SQL database.

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