What is the process of conducting an atomic swap between different cryptocurrencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Sure! Conducting an atomic swap between different cryptocurrencies involves several steps. First, both parties agree on the terms of the swap, including the exchange rate and the amount to be swapped. Then, they generate a unique hash value that represents the terms of the swap. Next, each party creates a transaction that locks their cryptocurrency in a smart contract. Once the transactions are confirmed on their respective blockchains, they exchange the hash values. After verifying the hash values, both parties reveal the pre-image, which unlocks the smart contracts and allows the cryptocurrencies to be swapped. Finally, the swapped cryptocurrencies are sent to the respective parties' wallets. It's important to note that atomic swaps can only be conducted between compatible cryptocurrencies that support the necessary scripting operations.
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• Dec 16, 2021 · 3 years ago
  The process of conducting an atomic swap between different cryptocurrencies can be broken down into several steps. First, the parties involved agree on the terms of the swap, such as the exchange rate and the amount to be swapped. Then, they create a multi-signature transaction that locks their respective cryptocurrencies. Once the transaction is confirmed on both blockchains, the parties exchange the necessary information to unlock the transaction. This information includes the hash value and the secret key. After verifying the information, the transaction is executed, and the cryptocurrencies are swapped. Atomic swaps are a secure and decentralized way to exchange cryptocurrencies without the need for a trusted third party.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe in the power of atomic swaps to enable seamless cryptocurrency exchanges. The process of conducting an atomic swap between different cryptocurrencies starts with the agreement on the terms of the swap, such as the exchange rate and the amount to be swapped. Then, the parties involved create a hashed time-locked contract (HTLC) that locks their respective cryptocurrencies. Once the HTLC is confirmed on both blockchains, the parties exchange the necessary information to unlock the contract. This information includes the hash value and the secret key. After verifying the information, the contract is executed, and the cryptocurrencies are swapped. Atomic swaps provide a trustless and efficient way to exchange cryptocurrencies, ensuring the security and privacy of the parties involved.
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