Imagine if you could trade cryptocurrencies like Bitcoin, Ethereum, and Binance Coin (BNB) as well as others across different blockchains on a peer-to-peer (P2P) market without the need for any middlemen. Users are already able to do this via the usage of atomic swaps.
Atomex, a decentralized atomic swap-based exchange that offers cross-chain and cross-protocol trading for dozens of blockchain protocols and is compatible with 99% of cryptocurrencies, is at the forefront of atomic swap technology.
This essay will go into the inner workings of the atomic swap technology as well as explain how Atomex is at the forefront of blockchain and cryptocurrency innovation.
What Exactly Are Atomic Swaps?
A cryptocurrency exchange that takes place directly between two users, without the involvement of any third party as a go-between to assist the transaction is known as an atomic swap.
These transactions are called “atomic” because either the deal is completed and one trader receives the other’s cash, or nothing happens and both dealers keep the amounts they started with. Atomic swaps are done wallet-to-wallet (P2P).
Throughout the whole of the atomic swap procedure, it cannot be emphasized enough that both traders must keep possession of their Bitcoin private key. As a consequence of this, exchanging assets using atomic swaps is an order of magnitude more secure than trading on a centralized exchange.
Because centralized exchanges do not allow users preserve custody of their private keys, this basically indicates that users do not genuinely own the coins and tokens they trade on such exchanges. If an exchange is hacked and users’ money is stolen, they may have little legal remedies.
This contrasts sharply with atomic swap trading. Atomic swap traders may keep complete control of their private keys. Second, atomic exchanges don’t increase security risks. Any internet wallet, called a “hot” wallet, exposes you to the same danger.
A non-custodial wallet that has never sent or received a transaction is referred to as a “cold wallet,” and it is without a doubt the most secure location for storing digital assets. However, this kind of storage does not allow for any sort of trading since it is no longer deemed “cold” after coins are sent from a specific address and hence no longer considered “cold.” Atomic swap trading is, without a doubt, the safest technique to trade coins or tokens for other cryptocurrencies, thus this should be your first choice if you want to do such a transaction.
Atomex Is The Leading Atomic Swap Exchange In The Industry.
Atomex Exchange is a hybrid decentralized financial exchange that was established using the underlying technique of atomic swap. This exchange was named after the atomic swap. The trader can conduct cross-chain transactions on this exchange, in which there is no need for a third party to be engaged. The numerous Blockchains allow for the currencies to be exchanged directly among one another. There is no need to pin additional coins in addition to that.
It is anticipated that decentralization of cross-chain operations would provide crypto traders with a greater sense of ease. Because it incorporates some elements of centralized exchanges as well as those of decentralized exchanges, it has the potential to be an excellent alternative to such exchanges.
At Atomex, the order book is generated at a separate location from where the liquidity providers are located. On the other hand, the process of carrying out the order is entirely decentralized. During the process of carrying out an atomic swap, the funds are moved from the wallets into the smart contracts or the Hash Time locked contracts directly.