What is atomic swap?

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15 Feb 2024
49

Atomic Swap is a technique used to change the presence of two different cryptos. This technique makes it possible to realize asset change between the two sides in a reliable and decentralized structure.

In general, the atomic swap process consists of the following steps:

1. ** Request Send: **
 The two sides acknowledge that they want to make a certain asset change with each other.

2. ** Determination of Prerequisities: **
 The conditions required for the swap process are determined in advance. These conditions may include factors such as transaction quantity, price and time.

3. ** Creation of Smart Contracts: **
 Smart contracts are created for swap process. These smart contracts include the conditions required to unlock the assets that will perform the process.

4. ** Transaction Performing: **
Using smart contracts, the lock of assets is opened and the process is performed. Both sides take their own presence and the process is completed.

Since Atomic Swap works in an inactive structure, it provides safety and privacy. In addition, since both sides need to accept the process, the operations become more reliable. This technique makes it possible to change assets between different blockchain networks and increases interoperability.
However, atomic swap operations may face some restrictions. For example, the assets to be traded may need to be the same type, or certain properties of supported blockchain networks may be required. In addition, the processing process can sometimes take time and can be costly.

** Advantages of Atomic Swap: **

1. ** Non -central change: **
 Atomic Swap operations take place directly between the two sides without a central vehicle. This allows users to directly change assets without worrying about reliability.

2. ** Privacy and Security: **
 Atomic Swap transactions benefit from the advantages of safety and privacy offered by Blockchain technology. Although the operations are clear and traceable because they take place in Blockchain networks, users' identities remain confidential.

3. ** Interoperability: **
 Atomic Swap makes it possible to change assets between different blockchain networks. This allows different crypto assets and blockchain networks to interact with each other and increase the interoperability in the ecosystem.

4. ** Transaction Costs: **
Atomic Swap operations are usually lower than the transactions performed in traditional central stock exchanges. Because intermediaries and intermediary fees disappear, which allows users to trad with lower trading costs.

** Disadvantages of Atomic Swap: **

1. ** Technological Challenges: **
 Atomic Swap operations may face some technological challenges due to compliance problems between complex technical requirements and blockchain networks. This may require users to have the appropriate technical knowledge before trading.

2. ** Limited support: **
 Some blockchain networks and crypto assets do not support or support atomic swap operations. This means that users can face limitations in assets and networks where they can trade.

3. ** Processing time: **
 Atomic Swap operations may sometimes take longer than the transactions performed in traditional central stock exchanges. This may vary with the effect of transaction approval times and the performance of blockchain networks.

4. ** Use Difficulties: ** Atomic Swap transactions may face some difficulties for users who are not used to trading on traditional central exchanges. This may require understanding of the process and technical requirements.

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