Magma: A New Channel Marketplace on Lightning

Electrical charges are generated when rock fragments, ash, and ice particles in a volcanic plume collide and produce static charges.
Look for the Magma Marketplace banner on the Amboss.Space homepage.

Simple Smart Contracting

Those that are familiar with lightning transactions know that lightning payments happen fast and that they are final. Meanwhile, if you’ve ever sent an on-chain bitcoin transaction, you should know that you need to wait for several confirmations before it’s considered final. Interfacing between a lightning payment and an on-chain transaction means that there are opportunities to cheat. Since opening a lightning channel uses an on-chain transaction, we’ve implemented a solution to build a simple smart contract on lightning: we’re using “HODL” invoices.

Reputation System

In addition to the invoice mechanism to protect users, we’re developing a reputation system to reward rule-following market participants and penalize those that don’t keep their promises. If you were promised a zero-fee channel and aren’t getting one, Amboss will be tracking the fee updates of the channel and reduce their earned reputation accordingly.

An Easy to Use, Inexpensive Marketplace

Attracting new channels has been a difficult problem, especially for new lightning users. To date, the easiest tool has been Lightning Labs’ Loop Out, which swaps between bitcoin on lightning and on-chain bitcoin. With Magma, you’ll be able to find inexpensive market pricing for new channels with an easy-to-use interface.

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