What Is a Token Swap and Why Is It Done?
In the event that you take after the digital currency markets, you have presumably perused that the multi-billion dollar blockchain venture EOS has as of late directed a token swap when it moved from the Ethereum organize onto its own restrictive blockchain.
In this guide, you will find conducting a token swap, how they work, and why they are critical for you as a financial specialist.
What is a Token Swap?
A token swap, otherwise called token movement, is the exchange of advanced tokens from one blockchain onto another blockchain.
This happens basically when ventures utilize one blockchain to raise reserves, for example, the Ethereum system, and after that need to exchange their tokens onto their own particular exclusive blockchain once the task's mainnet has been propelled. This was as of late the case for EOS and Tron, for instance.
Having said that, some blockchain ventures take part in token relocation in the event that they need to switch onto an alternate blockchain arrange for different reasons. For instance, the Storj arrange relocated from the Bitcoin blockchain onto the Ethereum organize in 2017 when the Storj's designers discovered that the Ethereum blockchain gave better adaptability to their task.
How Does a Token Swap Function?
On the off chance that you – as a speculator – are holding tokens on a trade, you will probably not need to do anything as the token swap happens. A large number of the expansive trades process the token swap on their stage while the client is basically credited the "new token" where they held the "old tokens" on their exchanging account.
In any case, in the event that you are holding the advanced tokens in your very own wallet, at that point the procedure will be more unpredictable and will rely upon every particular blockchain task's token relocation. As a rule, token holders should enroll their tokens in front of the token swap due date to guarantee they will be moved onto the new blockchain. This procedure is likewise alluded to as "mapping".
Amid the EOS token movement, for instance, token holders of the Ethereum-based ERC20 EOS token were required to enlist their Ethereum wallet address where they held their EOS token to an open EOS key to guarantee their tokens were swapped.
On the other hand, a few trades including Binance, Bitfinex, and Kraken handled the EOS token swap process in the interest of their customers.
Why Token Swaps Matter to Speculators
In the event that you are holding computerized tokens that will move onto another blockchain, it is of crucial significance to nearly take after the directions of the token swap as your old tokens could end up solidified and out of reach on the off chance that you don't enroll your tokens for the token relocation on time or store them on a trade that does not process the token movement for your benefit.
It is, in this manner, vital as a crypto financial specialist to remain over news and updates covering the ICOs and digital currencies that you have put resources into to guarantee that you don't inadvertently lose your assets because of a missed token relocation.
[Newssource](https://www.bitcoinmarketjournal.com/token-swap/)
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