Atomic swaps represent the peer-to-peer (P2P) process of exchanging cryptocurrencies across different blockchains. So what does Atomic Trade (Swap) mean and How to do with Atomic Swap. Let’s find out by reading the article below.
What does Atomic Trade (Swap) mean?
An atomic swap is the exchange of cryptocurrencies from different blockchains without a third party verifying or processing the transaction. Cryptocurrency exchanges, such as Coinbase Global (NASDAQ: COIN ), which typically handle transactions, have been completely removed from the equation. This gives further autonomy to both parties to the transaction, and is a truly "decentralized" peer-to-peer transaction. Atomic swaps are also sometimes called atomic cross-chain transactions.
Atomic swaps can be used when trading cryptocurrencies, eliminating the need to use fiat currencies (USD, EUR, etc.) as a base value for trading. But atomic swaps could also come into play when shopping online, as more merchants accept cryptocurrencies as a form of payment.
How to do with Atomic Swap?
It is done using cryptocurrency wallets and hashed time-lock contracts (HTLCs), which enforce the exchange when both parties agree. In fact, there are only a handful of atomic swap wallet providers and decentralized exchanges that can be used for swaps.
I hope this article will help you to learn what does Atomic Trade (Swap) mean and How to do with Atomic Swap. Atomic swaps are an important development in the crypto space as they attempt to create a more frictionless economy.
