Ep 24 - While Others Chased JPEGs, We Made Bitcoin Move
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Welcome to the Deco podcast, where we bring you stories from founders and investors in Web 3. Before we get started, this is not a financial or legal advice. It's just a conversation about things we find interesting in Web 3. Views expressed are our own personal opinions. The co members or guests appearing on the show may have positions on assets they talk about. Alright. Welcome to the new episode. Here with me is Simon Urban, co founder and CEO of ChainFlip. In this episode, we'll talk about what ChainFlip is, how it compares to the rest of the cross chain solutions on marketing, and much mo
for having me, man.
Instead of getting into your background, which is something that you've done on multiple shows, let's just dive into what ChainFlip is. Yeah. Sure. Chainflip is
a cross chain DEX. We support native Bitcoin, native Ethereum, native Solana. It's essentially Uniswap for, you know, those major assets. And we offer a number of other features as well to make that more composable with existing decks and aggregator solutions as well. So yeah. But Bitcoin is by far our largest market. It's the one that we've been the best at serving so far. But, of course, we're offering that connectivity between ecosystems through a pretty innovative, novel solution. It's taken quite a long time to build, but we're using cutting edge cryptography and our own validator network
Alright. So let's say that I have BTC on Bitcoin, and I want to go to Solana. I come to ChainFlip saying that here's my BTC. I want maybe Sol or USDC or Solana in exchange. So when
I sign the transaction, what all is happening in the background? The work actually starts before you send anything at all. So you come to our site or you go through one of our integration partners. And, essentially, what happens is you get to send an instruction to the network to say, hey. I would like to buy some Solana USDC, and this is my Solana address. If the swap fails, send it back to this Bitcoin address so I don't lose my money. Yeah. Let's go. And then the network will take that on board and through a small extrinsic that gets posted to our internal blockchain, it goes, sweet. It wil
Right. And what are the risks for someone who's providing liquidity to boost?
Well, the risk is that you have a situation where the Bitcoin network is 51% attacked. And, essentially, reorgs do happen quite a lot, but very rarely transactions get dropped. Essentially, what you're worried about is someone attacking the network specifically to screw boost users out of their money. So the economic security provided by Bitcoin is such that it's very, very unlikely, unless there is, like, a really, really huge deposit going into the system that uses all of the boost liquidity. Theoretically, then there might be value in attacking the network temporarily. But I think the pract
where how you wanna evaluate the level of that risk is really up to you. Right. And, like, you have an interesting approach where you have the state chain. Right? Is that where all the validator network, like, is coordinating in terms of whether the deposit has arrived and should the liquidity be, like, passed on to the user? So I'm curious about why do this differently instead of anything else. I mean, an l one or a l two or whatever. I
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