Sideshift.ai has released a live test demo of the application that allows cross-chain cryptocurrency trading and challenges the domination of established crypto exchange services.
Programmer Andreas Brekken has launched the live test of Sideshift.ai, a software application developed to enable users to swap cryptocurrencies between different blockchain protocols. The developer released the demo on Jan 11 and demonstrated a trade between Tether (USDT) and Bitcoin (BTC) held on the Lightning Network.
The swap was performed with the use of the Eclair mobile wallet for Android.
Brekken introduced the idea of the Sideshift app last year. He aimed to develop the platform to facilitate the conversion of coins at low fees and with a processing time of fewer than five seconds.
This application is one among others created for the open-source project Drivechain launched by software developer Paul Sztorc. Drivechain enables the compatibility of numerous alternative blockchains and allows them to work together with the BTC network in their agreement with Nakamoto consensus.
A closer look at Sideshift
The Sideshift application is still in its infancy, but the developers have already invited interested users to try its functionality in the testing stage.
To become a Sideshift “test pilot,” a user should fill out an application form and get a personal access code. However, such a test pilot code is granted only to applicants who have Bitcointalk.org accounts older than two years — which may make sense, since the development team is interested in the input of more experienced and reliable users.
Among other limitations, the Sideshift app isn’t available for citizens of North Korea and the United States.
The platform currently supports BTC, BCH, BNB, BSV, DAI, DASH, ETC, ETH, LTC, SAI, SPANK, TUSD, USDC, USDT, XMR, and ZEC. It also shows the conversion rates for each pair.
According to the Sideshift’s latest statistics, users have already swapped such digital assets as BTC for ETH, and BTC for ZEC.
As the platform is in its early stages, the developers warn users of possible bugs and request they report such cases.
Ready to become a SideShift TEST PILOT? Apply today: https://t.co/y0ZJPzl5rw
IMPORTANT: Only users with Bitcointalk accounts older than TWO YEARS qualify for this TEST PILOT STAGE
— SideShift.ai (@sideshiftai) January 13, 2019
Sideshift vs. Shapeshift
The cryptocurrency community should keep a close eye on this experiment since such cross-chain swapping platforms might soon compete with bigger and older exchanges.
As many experts note that, Sideshift operates much like Shapeshift — one of the leading crypto exchange services. However, in contrast to Shapeshift, the new app does not require the obligatory know-your-customer (KYC) procedure. Shapeshift’s decision to adopt KYC procedures triggered a wide-sweeping negative reaction within the cryptocurrency community.
Shapeshift’s implemented mandatory membership program forced every user of the service to provide genuine personal information. People were greatly disappointed with this move and considered it to be an attempt at depriving them of their rights to anonymity and privacy. Consequently, many customers waved goodbye to Shapeshift — which apparently caused a dramatic decline in the platform’s user base.
Eventually, in January 2019, Shapeshift CEO Erik Vorhees had to announce a layoff of 30 percent of its employees. ShapeShift tried to put the blame on the devastating crypto market downturn and specific expansion mistakes. However, industry participants believe that the main culprit for the massive losses in revenue was the KYC procedure.
Rivals are on the lookout
It is hardly surprising that the crypto community is now searching for other places that provide fast and anonymous cross-chain trades. Many experienced market participants don’t have much trust in intermediaries, including exchanges. Thus, the decentralized nature of such platforms is also of great importance to them.
This brings to the forefront projects like the Lightning Network and cross-chain atomic swaps.
Accordingly, Sideshift and similar applications might have a competitive edge over companies and projects subject to centralization and overregulation.
Would you prefer the Sideshift.ai application to Shapeshift? Do you believe it has the potential? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, Twitter.