Atomic Swaps

Atomic swaps are the process of exchanging two different cryptocurrencies from separate blockchains in a trust-less and decentralized manner. This operation is based on scripts, and it allows users to trade their coins directly from their own personal crypto wallets.

The biggest advantages of atomic swaps are in its decentralized nature. By removing the need for a centralized exchange or any other kind of mediator, cross-chain swaps can be executed by two (or more) parties without requiring them to trust each other. There is also an increased level of security because users retain full access and ownership of their funds unlike transacting through centralized exchange or third party. This form of peer to peer trading has much lower operational costs as trading fees are either very low or absent. Lastly, an enhanced level of anonymity is secured when atomic swapping privacy coins like Beam without an intermediary.