Original archive · February 18, 2024

Atomic Swap

This article is part of the original site archive. Explore the new concept glossary for source-linked explanations.

Atomic Swaps refer to a technology that enables the exchange of one cryptocurrency for another without the need for a trusted third party or centralized exchange. This is achieved through the use of smart contracts that enforce the swap or exchange only if both parties fulfill their respective obligations. Atomic swaps can occur directly between blockchains of different cryptocurrencies or off-chain, away from the main blockchain.

Crucial for enhancing decentralization in cryptocurrency trading, atomic swaps facilitate a trustless and secure way to trade directly with another party.

“Managed to perform an atomic swap yesterday. Swapped BTC for LTC directly, without going through an exchange. The future of trading feels decentralized and direct.”