Atomic Swap
An atomic swap is a peer-to-peer exchange of cryptocurrencies between different blockchains without needing a centralized intermediary. The swap either completes entirely or doesn't happen at all (hence "atomic"), eliminating counterparty risk.
Understanding the Concept
• Uses hash time-locked contracts (HTLCs) to ensure trustless execution • Both parties must complete their side or the swap automatically reverses • Enables true decentralized cross-chain trading • Can be slower than centralized exchanges due to blockchain confirmations
Real-World Example
Alice wants to trade 1 BTC for 20 ETH with Bob. They create an atomic swap where Alice locks her BTC with a secret hash. Bob locks his ETH with the same hash. When Alice claims the ETH by revealing the secret, Bob uses that same secret to claim the BTC. Neither can cheat because the secret is required on both chains.
How Strykr Helps
Strykr tracks Atomic Swap developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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