On-chain Atomic Swap - Litecoin, Vertcoin, Decred
Well guys it's happened!
As far as I know these trials are the first time the swap has occurred even though it's been discussed since back to 2013: https://bitcointalk.org/index.php?topic=193281.msg2003765#msg2003765
For those of you who don't know what Atomic Swap is or about this article here does a decent job explaining.
https://themerkle.com/what-is-an-atomic-swap/
Don't worry if you've never heard about this, I just stumbled upon the situation from this tweet by Charlie Lee yesterday:
And luckily for all of us the process seemed to be successful!
Charlie also responded back to my tweet to him about if the swap has fees and he said it goes to the miners.
So what exactly does this mean for all of us cryptoheads?
A few questions that popped into my ignorant head :P
- Does this overtime kill exchanges? I would think the natural answer is yes. So I'm now curious if an investment in binance coin for their exchange would be a bad idea over time...
Are there any "fees" involved? I don't know if maybe the transaction still pulls any fees, but I've tweeted out to Charlie Lee to see if he'll respond on the subject. (Will update if I find out an answer)- How quickly does the transaction occur?
Let me know what you guys think in the comments below!
~nX
I think that exchanges days are numbered that operate just between crypto-currencies. Shapeshift.io will always exist, as it can perform conversions for coins not yet capable of swaps. Exchanges like Coinbase will stick around for their investment capabilities, but if I want to buy XRP with BTC, the swap will be my preferred option so long as the swap has low fees. Plus, the network will act as the third party, meaning all transactions are safe, it'll be difficult to scam people with it (hopefully). I'd like a way to be able to do in person swaps for cash and coins securely now.
Are there a limited number of coins that can 'swap' though? Unless it is something that can be expanded to all coins, there will probably still be a place for exchanges.
Yeah I'm assuming right now because it's such a new thing only a small handful are even capable of such a swap at the moment. But I'm not an expert so don't completely take my word for it.
I thought the same. Was watching a video last night going into detail about it. I ended up not even watching after 5 minutes they got way to technical. Even if it’s a “better way” if you can’t tell it to people in a meaningful way they understand then very few will use it.
It’s all about the adoption rate. If no one is using it or it takes more effort than using an exchange then it’s got a very uphill battle to fight.
Very true.
The convenient part though is that nobody needs to be an expert on it to use it. It'll behave the same as Shapeshift.io does. You'll post: coins your giving up, coin you want to receive, exchange rate between the two. You'll send that to the network and it'll find a match and perform the swap. It's just like Shapeshift but built into the network itself.
Yeah if that is true that will be pretty freaking cool. I'm assuming it will be built into the wallets as an option to use...but don't know.
It's up to the developers, we have to make sure we continue to ask for it.
Interesting point. If someone doesn't already have a cryptocurrency in hand then they have nothing to exchange. You'll always need capabilities of fiat to crypto in some way shape or form. Thanks for the response @emerson307
Yeah for sure! The system still doesn't fix how we turn USD into BTC, but it'll make it easier to get weird coins like IoTA.
That is an interesting case I did not think about exchanging in person. However, won’t the person still be able to just steal their cash back or reverse a payment from their bank? How does this protect you once both parties agree the deal is done. Certain banks act as if bitcoin is a scam and therefore their client must have been scammed.
It would require some form of escrow that would hold both assests in the physical world.
I believe that the man is not stupid, even I am convinced that the LTC will jump very quickly and strongly on the stock market ...
I've been a fan of LTC for awhile and got my friend into LTC at $29 lol he's definitely happy that I did get him in at that price point!
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Very interesting event, i followed the swap in Charlie Lee twitter
Thanks for sharing
NP and Charlie has responded to me and said the miners get the fee. I've also updated the post to show.
Interesting!
I think the exchanges will be fine the same way we still have a Facebook and a Twitter despite their being better things out there like Steemit.
People know what an exchange is they can relate “oh like the stock market” yep you go their own exchange just like stock market and you can buy coins. If you take someone and put them into the cryptocurrency world where they might already be having a hard time understanding things then tell them” no need to use an exchange this is better” that’s enough to send them over a cliff. I watch the live video of it being explained last night – got way too technical. While that’s great for those who want nerd out and can understand it. Rest will just scratch their confused foreheads and keep using their normal and understandable exchanges.
I’m not sure what the barrier to entry is on getting into or enabling the “atom swap” but I assume the majority of coins out there will still want the easy and conveniences being listed on a an exchange brings. Right now having your coin listed on certain exchanges is a sign that it must be doing well enough to be accepted.
Will be interesting to see it grow however and become more user friendly over time.
Yeah I don't see the adoption happening over night, but it will be interesting to see how it all unfolds.
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