What are atomic swaps?

Atomic swaps are automated, self-enforcing cryptocurrency exchange contracts that allow cryptocurrencies to be traded peer-to-peer without the need for a trusted third party. As of 2017, cryptocurrencies could only be traded and bought through platforms such as Coinbase, Kraken, Coinsquare, and more.

Are atomic swaps a smart contract?

By using smart contract technology, thereby eliminating the need for centralized intermediaries, atomic swaps can be conducted both on-chain or outside the distributed network. In 2012, Dan Larimer of EOS and Steemit launched a P2P network called P2PTradeX, which some view as the main precursor to atomic swaps.

What is atomic swap Litecoin?

The atomic swap technology was brought to life in 2017 by Charlie Lee, who founded Litecoin, when he tweeted about how he “ did a cross-chain atomic swap with LTC/BTC ” and exchanged 10 LTC (Litecoin units) for 0.1167 BTC (Bitcoin units).

What are altcoin swaps & how do they work?

The creation of altcoins meant some cryptocurrency owners became interested in moving capital between coins. This type of token swap first appeared in September 2017, when an atomic swap between Decred and Litecoin was conducted. Since then, startups and decentralized exchanges have implemented swaps and allowed users the same facility.