An Atomic Swap is an exchange of cryptocurrencies from separate blockchains. The swap is conducted between two entities without a third party's involvement. The idea is to remove centralized intermediaries like regulated exchanges and give token owners total control.How Does an Atomic Swap Work?In order for an atomic swap to work, both parties need to have wallets that support the same protocol. Once both parties have agreed to the terms of the swap, each party will generate a unique hash. This hash will be used to confirm the details of the trade. Once both parties have signed off on the trade, the tokens will be exchanged and the transaction will be complete!What Are the Benefits of an Atomic Swap?Atomic swaps offer a number of advantages over traditional cryptocurrency exchanges. First, they are completely decentralized, meaning there is no third party involved in the trade. This reduces counter party risk and allows for near-instantaneous trades. Second, atomic swaps are incredibly secure, as they require both parties to sign off on the trade before it can be executed. Finally, atomic swaps give users complete control over their trading experience, as they can trade directly with other users without having to go through a centralized exchange.
