Hey guys I want to continue from where I stop on the Atomic wallet/atomic_swao App,
Atomic swaps are also often called cross-chain atomic swaps, meaning, two different cryptocurrencies that are present on different chains can be exchanged automatically without any trusted third party and there is no exchange/trading fees involved in this.
Note: Different businesses that implement this technology can add a fee structure for providing this service because these swaps can only be done by command line and are not as user-friendly as you would expect. But even if businesses charge you a small fee, it will be safer than trading/exchanging on centralized exchanges.
To get into the technical details of how the whole process takes place cryptographically, read more about atomic cross-chain trading.
Why Atomic Swap Matters to the growth of Cryptocurrency Industry
Atomic swaps open up a whole new way of looking at crypto trading. This technology can be used when two parties have to make a very large or a very small OTC trade.
Imagine you need to exchange 1000 BTC with 50,000 LTC. I am sure you would neither use a centralized exchange that is prone to hacks nor will you trust an escrow manager.
In this case, by simply using the atomic swap technology, you can exchange your 1000 BTC into 50,000 LTC without trusting an exchange or escrow service. Also, you can be 100% sure that even if the trade doesn’t take place successfully, you will not lose your 1000 BTC because of the atomic swap tech.
These swapped transactions if done, would happen on-chain and hence would be subject to all the limitations that both involved chains already have.
For example, in LTC/BTC atomic swap, the miner’s fee on respective blockchain would be deducted and the transaction completion times can be subject to Bitcoin’s mempool size at the moment of atomic trade.
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