First Atomic Swap.
FIRST ATOMIC SWAP BETWEEN BITCOIN AND ETHEREUM: CHANGING BTC DIRECTLY BY ETH
On October 7, a team of Altcoin Exchange developers, recently renamed Altcoin.io, revealed to have successfully achieved the first Atomic Swap between the two currently renowned blockchains, Bitcoin and Ethereum.
Atomic Swaps are transactions made directly between different blockchains without the need for a third party serving as a mediator. These third parties can be exchange houses or centralized sites responsible for doing these functions, so this type of direct exchange means a breakthrough in the development of transactions between blockchains and the decentralization of these processes.
Looking for progress in this technology, the code implemented in this Atomic Swap between Bitcoin and Ethereum is already available in GitHub for any developer or team of developers who wants to work on it for the purpose of improving it or adding new variables. Although they recommend that future tests are not done on the mainnet or main network of the blockchain, since it is still in experimental stage.
THE AMOUNTS AND PRICES
Going into details about the exchange made, it is striking that the amount allocated was the same in both currencies, even though their market price differs abysmally. The amount of the exchange was 0.12345 ETH per 0.12345 BTC which, at the time of writing, have prices of $ 302 for 1 ETH and $ 6,065 for 1 BTC, according to CoinMarketCap.
In other words, both parties to the exchange process can agree on the amount of coins that each will send, adjusting to the market or at the rate that seems fair to them. And since the publication of the Atomic Swap carried out mainly had experimental and media objectives, the equivalence of prices between BTC and ETH was irrelevant.
AGREEMENT AND TYPES
Since so far there are no platforms in charge of managing the Atomic Swaps, users can agree among them the exchange communicating directly, as well as can be agreed between automated machines. Gazdecki told us that they are working on the creation of a decentralized purchase order book and a pairing engine that connects users interested in making Atomic Swaps.
Another aspect that calls attention in the execution of this type of exchange is that it can be realized in two ways: inside the chain and outside the chain of blocks. The difference between the two, as expressed by the name of each, is where they are made.
For example, Gazdecki told us that the Atomic Swap between BTC and ETH was inside the chain, that is, it was done directly in the blockchains of Bitcoin and Ethereum. The disadvantage of this is that both usually take some time to confirm the transactions made. On the other hand, the Atomic Swaps outside the chain can be realized by means of the Lighting Network, which would allow that the exchange was practically instantaneous.
THE ESSENTIAL FOR AN ATOMIC SWAP BETWEEN BLOCKCHAINS
There are certain features that both blockchains involved in the Atomic Swap must have, but the most important is that they allow the use of a pair of tools called timelock and conditional transactions. These allow to agree on the space of time in which the channel of the transaction will be abierto; In this way, if the transaction does not execute or does not comply with the principles of the smart contract, the channel automatically closes when the established time period expires.
The blockchain of Bitcoin offers support for the use of these tools, while Ethereum, through its programming language Solidity, allows the development of these properties in case they do not exist as such.
THE FUTURE OF ATOMIC SWAPS
The CEO of Altcoin.io also told us that they aim to enable the realization of Atomic Swaps through this platform and also plan to work on the execution of this type of exchange among other blockchains soon, which explains the interest of its developers in improving this technology.
It is worth mentioning that the services provided by the exchange houses will be directly affected by the use of Atomic Swaps, since with the use of these users of criptomonedas will be able to exchange them between them without needing the centralized platforms. However, this does not imply that they can not continue to operate for anything other than involving fiat money.
The realization of the Atomic Swaps between different blockchains will add a new level of development to the ecosystem, which will surely expand the field of action and the versatility of it. In Gazdecki's words, "decentralization (provided by the Atomic Swaps) will lower commission prices and improve security." So the prospects are very conducive to crypto-enthusiasts in the next.
This is an interesting concept. Could prove t
This post has received a 1.56 % upvote from @drotto thanks to: @drakbirkenau.
Very good post. Thanks for sharing! Atomic Swaps is the future!
Great explanation. Thanks. Followed and upvoted
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