What is Atomic Swap?
An atomic swap is a cryptocurrency exchange between two blockchains. The swap is carried out between two entities with no intervention from a third party. The goal is to eliminate centralized intermediaries such as regulated exchanges and give token owners complete power.
Understanding Atomic Swap
The phrase atomic comes from the term “atomic state,” which refers to a state that has no substates; it either happens or it doesn’t—there is no other option. This relates to the status of the cryptocurrency transaction; it either occurs or does not occur.
Smart contracts are used by the majority of atomic swap wallets and blockchains. Smart contracts are programs that run within blockchains when specific criteria are met. The prerequisites in this scenario are that each participant consent to the transaction before a timer runs out. The use of a smart contract in the transaction prevents one party from stealing cryptocurrency from the other.
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