On March 18, non-custodial exchange service Boltz announced the ability to convert Bitcoin on the Lightning Network to stablecoin Tether (USDT) through atomic swaps without the need for intermediaries, accounts, or identity verification.
Through the Boltz Exchange portal, users can: SATOSHI receives USDT on Arbitrum compatible networks via Lightning Network. This process also works in reverse, allowing stablecoins to be converted to Bitcoin within the payment network.
This tool uses atomic swaps, a mechanism that performs conditional exchanges. The operation is completed only if both meetThis ensures that none are left unexecuted. This type of scheme aims to reduce counterparty risk without relying on a custodian. Additionally, it will be possible to perform decentralized exchanges between cryptocurrencies of different networks via bridges and bridging. bridge.
To achieve the conversion, The system uses tBTC as a technical bridge (A type of wrapped Bitcoin, or wrapped) traded on Arbitrum and exchanged with USDT within the same transaction. The entire process runs in the background and does not require users to interact directly with multiple networks.
Improved interoperability between networks
This integration is supported by USDT0, a version of USDT designed to work across different networks using the LayerZero protocol. This is an infrastructure that allows communication between blockchains without the need for a central intermediary.This approach aims to concentrate liquidity in a single token.rather than fragmenting it across multiple versions of the stablecoin.
Additionally, Boltz said the tool has fee abstraction built-in. This eliminates the need for users to own additional tokens — like Ether — is for paying fees on the destination network.
The company said it plans to extend this functionality to other layers of the Bitcoin ecosystem, including the mainnet, Liquid Network, and Rootstock. As well as external networks such as Tron and Solana..
This development joins other recent efforts to connect Lightning to various networks. As reported by CriptoNoticias, atomic exchange was previously implemented between Lightning and Liquid with the aim of facilitating transfers between layers without relying on a centralized platform.