Atomic Swaps Improving Security and Cost Efficiency in DEX
The post Atomic Swaps Improving Security and Cost Efficiency in DEX appeared on BitcoinEthereumNews.com. Atomic Swaps is a peer-to-peer trading employed to transfer crypto-currencies between different blockchain exchanges without relying on third parties and excluding bridges, and wrapping. Some of the main features of the Atomic Swap Protocol are: (i) If all parties adhere to the protocol, swap occurs as intended. (ii) The party complying with the protocol will not suffer even if any one party deviates from the protocol. (iii) No party will be incentivized economically to deviate from the protocol. The Atomic Swaps make use of a special category of smart contracts designed to facilitate exchanges of digital assets known as Hashed Time Lock Contracts (HTLCs). Smart contracts are self-executable predefined contracts. Components of HTLC Hashlock: This mechanism enables the security of a contract with a distinct cryptographic key that can only be created by the cryptocurrency’s depositor. The purpose of this unique key is to guarantee that the swap will be completed only when the party that has the key gives their consent to execute the transaction. Timelock: This mechanism is linked to the time limit for the completion of the swap. The purpose of this is to guarantee that the transaction should be finalized within the defined time frame. If the transaction is not finalized within the predefined time frame then it is possible that the depositor reclaim funds. The crucial role that is played by Timelock is to ensure the security of swap transactions. Thus, it mandates both parties to execute the transaction within the predefined time frame for a successful swap to complete. These timelocks are created on Check Sequence Verify (CSV) or Check-Lock-Time-Verify (CLTC). With CSV, funds are released or locked only after a certain number of blocks are generated. With CLTV, funds within a transaction are released or locked based on a pre-specified date and time. …
The post Atomic Swaps Improving Security and Cost Efficiency in DEX appeared on BitcoinEthereumNews.com.
Atomic Swaps is a peer-to-peer trading employed to transfer crypto-currencies between different blockchain exchanges without relying on third parties and excluding bridges, and wrapping. Some of the main features of the Atomic Swap Protocol are: (i) If all parties adhere to the protocol, swap occurs as intended. (ii) The party complying with the protocol will not suffer even if any one party deviates from the protocol. (iii) No party will be incentivized economically to deviate from the protocol. The Atomic Swaps make use of a special category of smart contracts designed to facilitate exchanges of digital assets known as Hashed Time Lock Contracts (HTLCs). Smart contracts are self-executable predefined contracts. Components of HTLC Hashlock: This mechanism enables the security of a contract with a distinct cryptographic key that can only be created by the cryptocurrency’s depositor. The purpose of this unique key is to guarantee that the swap will be completed only when the party that has the key gives their consent to execute the transaction. Timelock: This mechanism is linked to the time limit for the completion of the swap. The purpose of this is to guarantee that the transaction should be finalized within the defined time frame. If the transaction is not finalized within the predefined time frame then it is possible that the depositor reclaim funds. The crucial role that is played by Timelock is to ensure the security of swap transactions. Thus, it mandates both parties to execute the transaction within the predefined time frame for a successful swap to complete. These timelocks are created on Check Sequence Verify (CSV) or Check-Lock-Time-Verify (CLTC). With CSV, funds are released or locked only after a certain number of blocks are generated. With CLTV, funds within a transaction are released or locked based on a pre-specified date and time. …
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