💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

What is an atomic swap, and how does it work?

Published 06/29/2023, 08:54 AM
Updated 06/29/2023, 11:00 AM
© Reuters.

Atomic swaps enable P2P exchange, while cross-chain bridges provide a connection between blockchains for the transfer of assets through tokenized representations.

While both cross-chain bridges and atomic swaps enhance blockchain interoperability and serve the purpose of transferring crypto coins across various blockchains, they function in different ways. Cross-chain bridges serve as a connection or link between multiple blockchain networks. They act as intermediaries that facilitate the transfer of assets between these networks.

Complexities with trade swap

Lack of fiat-crypto on-ramp

Fully decentralized nature

Enhanced security

Interoperability and altcoin trade flexibility

Hashlock

Timelock

Related: How to mitigate the security risks associated with crypto payments

Continue Reading on Coin Telegraph

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.