What is Atomic Swap?
Atomic swap, also known as chain swaps, enables two people to make direct and real-time transactions by preventing theft before trading is completed on various blockchains.
Therefore, with atomic swap, trading is either fully realized or canceled and not approved. Both users get their money back after the cancellation.
To perform Atomic Swap, an infrastructure called Lightning Network is essential. The Lightning Network infrastructure provides the perfect link for transactions between two different blockchains.
Advantages of Atomic Swap
One of the most important advantages of Atomic Swap is its highly secure transfer system. The transfer is only verified by the persons involved in the transfer. In this way, intermediary institutions cannot be involved in the transaction.
In the initiated transfer transaction, the transaction is canceled when one of them does not verify. After the cancellation, the money is returned to the owners. For this reason, there is no possibility of money loss.
Another advantage of atomic swap is the absence of intermediaries. When we look within the standards, the transfer transactions on the exchange sites are realized through exchange. So we have to trust the site we trade. Keeping crypto coins on these types of sites is always a risk.
Another feature of atomic swap is that no commission fee is charged like on the exchange sites. This has a positive effect on the parties performing the transaction. Likewise, since the third parties is not expected to complete the transfer, the transfer process takes place very quickly.
Atomic Swap-type transfers are only made between major coins. They are trying to make atomic swap transfers, which is used by well-known people in the world of cryptocurrency, accessible for all cryptocurrency users by adding improvements and innovations.
Since cryptocurrencies prefer to use Electrum Server, users can avoid downloading the entire blockchain of cryptocurrencies that they can transfer by atomic swap to their PC. In this way, operations will be much simpler.
Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.