Web3 Glossary: A~ Atomic swaps ♻

📑 Get ready to decipher the language of the future! I’m starting an A-Z glossary series unpacking key terms in blockchain and finance. 💰

📅 Every day, we’ll tackle a new concept, making the journey through this exciting space both informative and engaging.

Whether you’re a seasoned professional or just starting your exploration, this series is for anyone curious about the future of finance.
#blockchain #finance #glossary #lifelonglearning

🔖 Concept for the day is Atomic swaps ♻

An atomic swap is an exchange of cryptocurrencies from separate blockchains. The swap is conducted between two entities without a third party’s involvement. Offering a decentralized, secure, and trustless alternative to traditional methods. Forget relying on centralized exchanges (CEXs)!

📥 Imagine: Two individuals, Alice and Bob, wanting to trade cryptocurrencies across different blockchains. With atomic swaps, they can achieve this directly, eliminating the need for a middleman.

🎯 Here’s the magic:
1. Self-executing smart contracts automate the exchange, ensuring fair and secure completion.
2. Hashlock guarantees only authorized parties can unlock the transaction, preventing theft.
3. Timelock acts as a built-in safety net, automatically reversing the transaction if not completed within a set timeframe.

🔍 Historical Note: In 2017, the first successful atomic swap, involving Litecoin (LTC) and Bitcoin (BTC), marked a significant milestone in the crypto world.
Where to find them? Popular platforms like AtomicDEX, the Lightning Network, and Liquality support atomic swaps.

#money #Atomicswap #learningeveryday #web3 #blockchain #cryptocurrency #decentralization #dapps #defi #futureoftech #innovation

Web3 Glossary: A~ Atomic swaps ♻ was originally published in The Dark Side on Medium, where people are continuing the conversation by highlighting and responding to this story.