After the release of Bitcoins “Segwit” fork, a new technology has been introduced to the crypto game, and it’s called atomic swapping. Here’s what you need to know about it.
What Is An Atomic Swap?
An atomic swap, is a crypto coin trade from one blockchain, to the other. Before atomic swapping was introduced, it was impossible to send Bitcoin, to a Litecoin wallet. However, now you can do so while converting it to litecoin.
We can do this with exchanges though, can’t we?
Yes, and that’s how it’s always had to be done previously. Atomic swapping removes the middleman(once again!) and allows you to get a direct exchange, of one type of coin to another type of coin instantly, with no fee. It’s the perfect way to transfer a blockchain specific coin, to another blockchain specific coin without having to pay any fees.
How Can I Do One?
At the time of writing this, accomplishing an Atomic swap is not do-able for the standard crypto-enthusiast. Developers among many different blockchains are working on getting it functioning. Surely atomic swaps will be part of normal crypto in no time!
Will It Work With Any Blockchain?
Not quite. The blockchain will need to have two important factors in it’s favor in order for an atomic swap to function. First off, the blockchain needs to be functioning with segwits new “thunder network” code, which will usually involve a hard-fork(as we saw with VertCoin, Litecoin, and Bitcoin… All three are atomic swappable now). Secondly, the blockchain needs to support it, which usually involves the hard labor of it’s developers. However, if said blockchain does go through the hard-fork for segwit, it’s almost certain the developers of that blockchain will enable atomic swapping. Otherwise, there wouldn’t be much of a point in the initial fork, anyway.
Atomic swapping is a new form of transaction, introduced in Bitcoins segwit hard-fork. It allow’s for cross-blockchain transactions without a middleman(unlike exchanges). At the time of writing, completing atomic swaps is not the norm, or stable… However, it will be in the near future.