2024 kicked off at full speed in the Bitcoin world: we celebrated the 15th Bitcoin anniversary on January 3rd; Bitcoin ETFs were approved and have recorded record-breaking trading volume; and, of course, we are heading towards the next Halving after block 840,000, which is estimated to happen around April 19th.
While this alone is already plenty to digest, we at 10101 will continue pushing the boundaries of self-custodial trading on Bitcoin using Discreet Log Contracts (DLCs).
2023 - A Year in Review: Achievements and Growth
2023 was the biggest year for us ever.
Winning $750k in NY
At the beginning of April, we packed our bags and flew to New York to participate in the first edition of the prestigious Bitcoin startup accelerator, Wolf (https://wolfnyc.com/). After completing the 8-week program and pitching in front of potential investors, we emerged victorious, securing an additional investment of $500k. Combined with the $250k cheque that every startup got for participating, we earned a whopping $750k. We are very proud of our achievements at Wolf, but that is just one small step in our journey towards untethering the power of self-sovereign Bitcoin finance.
Giving back to the community
During the summer, we shared our expertise on DLCs at various conferences, including BTC Prague, Baltic Honeybadger in Riga, The Bitcoin Conference in Innsbruck, and Adopting Bitcoin in El Salvador. It is one of our primary goals to not only develop groundbreaking technology, but also contribute to the wider community by imparting knowledge and educating others on how to continue growing the Bitcoin ecosystem.
Public launch of our beta program
In October, we reached a significant milestone with the eagerly awaited public launch of our mobile application, 10101, now available on both Android and iOS platforms. This marked a pivotal moment in our journey, bringing us closer to our audience and allowing users to experience firsthand the innovative features we had been working on.
The positive response from our initial users has kept us motivated as we refine and enhance the app based on all the valuable feedback.
USDP: Pioneering the World's First Self-Custodial Stablecoin on Lightning
In late 2023, we came second in second edition of the Legends of Lightning Tournament (https://bolt.fun/project/10101) organised by bolt.fun. During this event, we achieved a gret feat by launching the world's first self-custodial stablecoin on Lightning—USDP.
Checkout our video here: https://rumble.com/v40mwq7-usdp-the-first-usd-on-lightning.html
USDP meets the longstanding demand within the Bitcoin community, seamlessly blending the stability of a traditional "stable coin" with the censorship-resistant network of Bitcoin. Users can now send and receive satoshis around the Lightning Network while maintaining stability in USD value which makes USDP natively interoperable with any Lightning wallet.
This unique feature ensures users experience the benefits of a stablecoin while retaining full control over their private keys. USDP marks a significant stride in providing a secure and censorship-resistant financial experience on the Lightning Network.
Navigating Challenges: Lessons from 2023
2023 presented its fair share of challenges, as pushing the boundaries of self-custodial trading proved to be a formidable task. Our commitment to bringing self-custodial trading to the masses led us to integrate DLCs into Lightning. This allowed users to engage in self-custodial trading without counterparty risk, directly from their Lightning wallets.
The convergence of these cutting-edge technologies, however, introduced several hurdles: code complexity, protocol complexity and the number of transactions which have to be broadcasted when force-closing a DLC/Lightning channel.
Other challenges included random channel force-closures stemming from fee rate negotiation failures, dealing with amounts that risked pushing channel balances below dust values, and navigating high transaction fee environments that unexpectedly complicated Lightning transactions.
During this journey we learned a lot about Lightning, fee management, and the intricacies of the Bitcoin mempool. Despite the challenges, we remain convinced that DLCs are the ideal tool for self-custodial trading on Bitcoin. However, recognizing the need for Lightning improvement, we've adjusted our course to focus on building DLC Channels.
Building on the groundwork laid two years ago with ItchySats (https://comit.network/blog/2022/01/11/cfd-protocol-explained), we are now bringing DLC Channels to mobile devices, simplifying and enhancing accessibility. Today we are using the more advanced library rust-dlc (https://github.com/p2pderivatives/rust-dlc).
This strategic shift was driven by the complexity of merging both technologies seamlessly.
It's important to note that we are not abandoning Lightning. In an upcoming release later this year, we will connect DLC Channels with Lightning, offering users the best of both worlds: the simplicity of DLC Channels and access to Lightning’s large payment network.
For a more technical deep dive on this topic, stay tuned for an upcoming blog post on this topic.