atomic-swaps

Vocabulary Word

Definition

Atomic swaps are a technology that lets you directly trade one type of cryptocurrency for another. Instead of using an exchange or third-party service, you can do the swap directly. It's like how you might trade a toy with a friend, instead of selling it and then buying a new toy.

Examples in Different Contexts

In blockchain technology, 'atomic swaps' enable cross-chain trading, enhancing interoperability between different blockchains. A solution architect might explain, 'Atomic swaps are key to our strategy for enabling seamless transactions across various blockchain networks.'

Practice Scenarios

Business

Scenario:

We should think about alternative approaches to minimize transaction costs and risk when dealing with different cryptocurrencies in intercompany transactions.

Response:

Atomic swaps might be an excellent fit for us to streamline intercompany cryptocurrency trading without the associated transaction costs.

Innovation

Scenario:

Peer-to-peer trades should be more efficient. We need something that supports direct, secure exchanges without the extra hassle and dependence on third-party exchanges.

Response:

That's right. With atomic swaps, we can execute peer-to-peer trades directly without the need for any intermediaries.