Atomic Wallet

Introduction

A cross-chain swap is a traded between two users of different cryptocurrencies.

The first party sends coin (A) to a second party’s (A) address, while the second party would send (B) coin to the first party’s (B) address. There is a problem that occurs here. The issue is that there is no protection if one of the parties goes against the agreement. That was the past. Now, the future is a mutually-trusted third party for escrow is to solve the problem. An atomic cross-chain swap is the answer the community was waiting for.

Atomic swaps acts as a binding contract between both parties. Within the contracted transaction, there is one contract for each blockchain. A key element in this process is that the contracts contain an output that is spendable by either party, but the rules required for redemption are different for each party involved.

Party (A), will pay for the intended trade amount provided and will generate a secret. Keeping it a secret is a main component in this process. As long as the secret is known, the contract output can be redeemed by party (B). If the time period expires after the contract transaction has been mined, but one party has not redeemed, a refund can be placed back in the initiators wallet.