This Bitcoin DeFi exchange wants to keep you safe from hacks

A Bitcoin based one Decentralized exchange (DEX) is coming – and its architects hope to save users from the chaotic and hack-prone world of bridges.

Portal, a San Francisco-based startup, exactly behaved $34 million in a seed funding round from companies including Coinbase Ventures, OKX Ventures and Arrington Capital to support the development of the product.

The DEX allows anyone to exchange Bitcoin (BTC) for other cryptocurrencies – quickly, cheaply and without intermediaries.

A DEX, or Digital Asset Exchange, allows users to trade tokens directly. Unlike major crypto exchanges like Binance, anyone can execute trades on a DEX as the platforms do not ask for customer information such as traders' name, address or ID – information required by most KYC (Know Your Customer) financial regulations.

The idea behind Portal, told CEO Chandra Duggirala Decipheris intended for the peer-to-peer (P2P) platform to help users exchange BTC to other chains quickly and cheaply Lightning Network– and with little risk.

Why is there so much risk today? Because the people in the decentralized finance (DeFi) Sphere typically exchanges cryptocurrencies via cross-chain bridges. Bridge protocols – which allow users to transfer assets from one blockchain to another – are vulnerable to hacks. In fact, $2.8 billion was lost to cross-chain custody solutions in the last 18 months, Duggirala said Decipher.

Portal says it will solve this problem with “secure and transparent Layer 2 atomic swap technology.” Nuclear swaps refer to the cryptography-based cross-chain swapping technology and Smart contracts.

Portal will also use the funding to develop a non-custodial mobile wallet that integrates the main DEX and allows users to send, receive and store assets across blockchains via their smartphone.

“Portal is pioneering what DeFi looks like on Bitcoin and we are excited to support this team as they continue to deliver results,” said Michael Arrington, founder and partner at Arrington Capital, in a prepared statement.

Edited by Ryan Ozawa.

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