Atomic Swaps and TWINS Explained!
TWINS: Peer to Peer values exchangesAtomic swap is a peer-to-peer exchange of cryptocurrencies from one party to another, without passing through a third party service like a cryptocurrency exchange. During this entire process, the end users have complete control, record and ownership of their private keys. Atomic Swaps has the potential of completely revolutionizing the money transfer system in the crypto world. To put it in simple terms, atomic swaps will enable people to directly trade with one another wallet-to-wallet.
Problems with centralization and why Atomic Swap is the answer -
Hack Vulnerability
Centralized exchanges always have the risk of getting hacked. Probably the most infamous example of this is Coincheck which got hacked for $550 million worth of NEM. The worst part is that this hack greatly reduced crypto sentiment in Japan, a country that was traditionally known to be very crypto friendly.Subject to Mismanagement
The infamous Mt. Gox hack where bitcoins worth $500 million were robbed happened directly as a result of CEO Max Karpeles's inept management. As Andreas Anatopoulos put it: "Magic The Gathering Online Exchange (Mt. Gox) is a systemic risk to bitcoin, a death trap for traders and a business run by the clueless."Volume Demands
Exchanges can't deal with changes in demand, especially when there is a sudden increase in demand. Do know why BCH's value nearly went down by half on 12thNovember? Turns out, there was a sudden rise in demand and most exchanges couldn't cope. Bithumb, in particular, suffered 90 mins of downtime and lost 60,000 BTC in volume.Subject to Government Regulation
Because the centralized exchanges are registered in particular countries, they are subject to the whims of the government, hence due to the reasons stated above, centralized exchanges are not the ideal way to go forward for mainstream adoption.
Why do we need Atomic Swap and TWINS
TWINS Atomic Swap -
TWINS by New Capital will introduce a highly innovative and completely decentralized exchange platform with cross-chain atomic-swaps capabilities to facilitate the direct transacting of value between network users. Needless to say that there will not be any transaction fees given that it's direct peer-to-peer transfer and these transactions are performed directly between user wallets. The TWINS cryptocurrency will play a key role in empowering the exchange platform for trading of order listings and to reward the community-supported and decentralized hosting of network nodes.