Atomic Swap Explained
An atomic swap is a smart contract technology that empowers the exchange of one cryptocurrency for an alternative cryptocurrency without using central intermediaries, such as exchanges. Atomic swaps can take place unswervingly amid blockchains of different cryptocurrencies , or they can be conducted off-chain, away from the foremost blockchain. They first came into prominence in September 2017, when an atomic swap between Decreed and Litecoin was conducted. Since then, other start-ups and decentralized exchanges have allowed users the same facility. For example, Lightning Labs, a start-up that uses bitcoin’s lightning network for transactions, has conducted off-chain swaps using the technology. Cryptocurrencies and decentralized exchanges, such as 0x and Altcoin.io, have also incorporated the technology. Atomic Swaps Break Down As it occurs today, the process for switching cryptocurrencies is time-consuming and complex. This...