Hashflow binds and scales Bitcoin and Ethereum to build fast trust-minimized trade networks

Varun Vruddhula
Aug 28 · 4 min read
Figure 1: Hashflow vs Current CEX and DEX models

Bitcoin offers non-political and uncensorable hard money as a network service with extremely high settlement assurance and thermodynamic security. Ethereum offers solidity and automated smart contract technology as a network service. Hashflow scales ETH and BTC to offer low-latency, non-custodial, trust-minimized trading platforms as a network service.

Introducing Hashflow

Hashflow is a distributed network of open, trust-minimized, multi-centric hubs built on Ethereum and Bitcoin, each offering non-custodial, low latency trading across different markets. These hubs comprise a scalable ecosystem that provides the speed, convenience and liquidity features of traditional financial Exchanges and OTC Desks along with the non-custody, transparency, and solvency features associated with DEXs.

Hashflow provides anyone, including Exchanges, OTC Desks, Traders, Capital Allocators, Liquidity Providers, Banks, Hedge Funds, Sovereigns, Insurers, etc., with automated issuance, execution, custody, credit, clearance, and settlement functions as well as collateral management, transparency, audited market data, and cross-chain asset swaps at nearly null cost using SPV Proofs and Proof of Solvency.

Figure 2: The Hashflow Network

What is special about Hashflow?

Hashflow is the only protocol that successfully integrates Credit-Lightning and Multicentric Distributed Plasma to scale BTC and ETH and binds them together using Non-Atomic Swaps for mutual benefit without a new blockchain or sidechains.

Hashflow hubs provide the speed, convenience and liquidity features of traditional financial Exchanges and OTC Desks along with the no-custody, transparency, and solvency features associated with DEXs.

Figure 3: The Hashflow Circuit

Hashflow addresses the capital inefficiency problem that is prevalent in the existing protocols such as Lightning and Arwen and removes the need for the hubs or super-nodes to lock up collateral in the state channels in order to start a business. In addition, Hashflow employs a hub-spoke model for ease of use, speed, and flexibility so hubs can operate with traditional databases instead of new blockchains or sidechains.

Hashflow offers cashflows as incentives. Users do not require a token to access network services. Instead, active network participants mint Hashflow Tokens (HFTs) for providing liquidity or incentivizing other participants to provide liquidity by offering competitive markets. HFT holders can stake their tokens for a mathematically guaranteed share of Network Profits.

Read the whitepaper to learn more.

Why should you care?

While the emergence of crypto technology has created new and possibly boundary-less vistas for open, tokenized, liquid, scalable, trust-minimized distributed markets, the operational model of the current platforms and technologies that trade native digital assets require the Exchange and OTC Desk operators to hold custody of user assets or user private keys and remain subject to loss, hacks, embezzlement, and mismanagement. In addition, there is no transparency of operations and traders and Liquidity Providers do not know the solvency status of the Exchanges and OTC Desks.

Fully decentralized Exchange (DEX) protocols solve the problem of custody and transparency but suffer from low speed, poor UI, price variability, and lack of liquidity. There is a need to bridge this gap and provide the speed, convenience and liquidity features of traditional financial Exchanges and OTC Desks along with the no-custody, transparency, and solvency features associated with DEXs.

The Hashflow approach decentralizes power by allowing anyone to start a hub within an open, trust-minimized, distributed crypto market structure with the associated built-in functions of the traditional financial market structure as well as incorporating the benefits of crypto automation and verification. Anyone, including financial institutions with state-sanctioned charters, can join the Hashflow network as Hashflow hubs and experience new market opportunities for additional revenue and growth.

Figure 4: New market opportunities for additional revenue and growth

Next Steps

Hashflow Smart Contracts are currently being audited and shall be released in the upcoming weeks. Our whitepaper is available here, and we welcome everyone to join our telegram here, where we will be happy to discuss our protocol architecture and release more specific product information.

Request early access.

Learn more about Hashflow and join our community

Website | Twitter | Telegram | Whitepaper

Hashflow

Infinite Markets.Scalable BTC-ETH Swaps. Keep your keys.

Varun Vruddhula

Written by

Buidling Hashflow.

Hashflow

Hashflow

Infinite Markets.Scalable BTC-ETH Swaps. Keep your keys.

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