Hello Stackers and Predyx users,
We're finally starting to look into solutions for Non-custodial wallets for Predyx (both user and market wallet).
At this point here are 3 solutions which we've been considering:
- Spark
- Ark
- Cashu ecash
However none of them are perfect, they all have their own flaws. Feel free to correct my assumptions:
Spark has privacy issues - as we all must have heard of it recently. All your transactions can be tracked via spark explorer with some reverse engineering. At the same time they have the ability to issue tokenized shares for the markets. No smart-contacts or DLCs "yet", but its in the pipeline. Multi-sig wallet not yet supported for bitcoin, but supported for tokenized shares. They're 100% Lightning native.
Regarding the privacy issue of Spark - here's my argument for using Spark. As you all the know, currently in Predyx all your trades/shares/activity are open and visible to the world. If someone wanted to reverse engineer your transaction, they could easily do so by scrapping the markets/activity. Prediction markets are generally very open in the above regards for transparency reasons.
Ark also has it's own issues. They're not 100% lighting native. We'll need a bolt swap to use their solution. However they do have the ability to run smart-contracts and issue tokenized shares for the markets.
Cashu-ecash: I don't know much about it, but I've heard you need to trust the mint. But its pretty easy to send and receive the token on any type of communication protocol (sms, emails etc)
Please share your thoughts for and against the above solutions. And help us shape Predyx's transition into a non-custodial prediction market.