Can Atomic Swaps Fix The Issues Of Centralized Exchanges?
By Max S. - Cryptocurrency Enthusiast - 12-03-2021
Bitcoin (BTC) and cryptocurrency have been thriving in the media for the last several months. In what many analysts compared to the 2017 cryptocurrency Bull Run, we've witnessed many cryptocurrency gains in value, market capitalization, and price.
With the rise in popularity, a variety of debates have taken place on the viability of cryptocurrencies as a reserve commodity or money. Issues concerning uncertainty, energy usage, and rising transaction costs for trading Bitcoin and buying crypto such as Ethereum (ETH), are receiving attention.
Active Bitcoin wallets hit 22.3 million unique addresses in January 2021, reaching an all-time record. Without a doubt, the asset attracts interest from both long-term believers and new investors. In recent years, we have also seen changes and barriers to cryptocurrency transactions as the platform continues to develop. One such advancement is the atomic swap.
Atomic swap is a secure, contract-based, shared technology that allows people to take separate blockchain assets where the ownership of one user's asset is not relinquished until they have the assurance of ownership of the other asset.
Created in 2013 by Tier Nolan, the concept was very much in uncertainty until 2017, when Litecoin's (LTC) founder, Charlie Lee, tweeted a cross-chain nuclear exchange between LTC and BTC. Since 2017, nuclear swaps have slowly changed, offering a fully decentralized means of trading virtually any cryptocurrency.
For the last three to four years, nuclear swaps (atomic cross-chain trading) have started to grow, while retaining the same concepts and general goals. At a time when centralized markets are dealing with substantial trade costs, KYC authentication, and possible attacks, atomic swaps are a truly distinct option for them.
Nimiq has become one of the top crypto atomic swaps in the industrial sector; Nimiq is a decentralized, censor-resistant payment protocol that emphasizes on comfort and efficiency of use. In less than 30 seconds, you can make a self-custodial Nimiq wallet and then buy BTC and NIM in your wallet directly through a bank transfer.
The open-source initiative also enables users to take part in the journey and eventually seeks to make a major contribution to the vision of a decentralized society. The numerous potentials locked up in Nimiq set a trend that would make atomic swaps more common in the near future.