Nash, a non-custodial cryptocurrency exchange, has introduced non-wrapped Bitcoin trading for all the users on its platform.
The exchange introduced Bitcoin trading to some of its clients earlier this week, extending this service to all its uses later.
Non-custodial platforms have gained a lot of attention lately as traders in these exchanges do not need to deposit their holdings on the exchange.
Cross-chain transaction is the limit
However, these trading platforms have major limitations. Being decentralized, they can only offer trading on a single Blockchain network. The majority of these exchanges offer trading in Ethereum and other ERC-20 tokens.
As Bitcoin runs on an independent blockchain, it cannot be traded in its original form on a non-custodial exchange. So these exchanges develop a wrapped Bitcoin on Ethereum blockchain, which later can be traded centrally for original Bitcoin.
Nash is circumventing this limitation of non-custodial exchanges by bringing trading with real Bitcoin, not a wrapped version.
On Bitcoin subreddit, a co-founder of Nash, detailed that the feature is still in a testing phase and asked the traders not to use it for primary Bitcoin trading.
“Please do not use the BTC markets for your main trading for now as it is still on testing phase,” the co-founder noted. “We will be more than excited to scream to the world to move their trading to Nash in a few weeks.”
At present, there is also a deposit limit of 1 Bitcoin for the trading test.
Last November, the startup introduced Bitcoin deposits on its wallet platform stating that it was “just the start of our long-term plan to support the network.”
“One of the first things we looked into when we wanted to do non-custodial Bitcoin trading was kind of a wrapped Bitcoin that’s traded on an ETH chain or a NEO chain. Due to true custody issues, we decided that wasn’t the way,” Thomas Saunders, a co-founder of the project said in the quarterly report conference. “So we ended up building a state channel-like protocol for trading Bitcoin, and we believe it’s a pretty awesome solution to deliver to our users.”
