What is an atomic swap? Does Zenon Network support them?
1 Answers
In short, yes. Zenon Network does support peer to peer atomic swaps.
An atomic swap is a technology that enables the exchange of one cryptocurrency for another without needing a trusted third party or centralized exchange. The term "atomic" in this context refers to the fact that the swap either happens entirely or not at all, ensuring that either both parties receive the respective assets or neither does.
Some benefits of atomic swaps include:
Reduced Counterparty Risk: Because the swap happens in a single, indivisible operation, the risk of one party defaulting after receiving the other's funds is eliminated.
No Intermediaries: There is no need for an intermediary or central authority to oversee or facilitate the transaction.
Atomic Swaps in Zenon Network leverage Hash Time-Locked Contracts (HTLCs). This is a mechanism used in atomic swaps, where a cryptographic hash function and time lock functionality ensure that both parties must submit their transaction proofs within a specified timeframe for the swap to execute. In Zenon Network these functions are abstracted away and wrapped in a friendly graphical user interface.
If you are looking to perform a Peer to Peer Atomic Swap in Zenon Network follow the instructional video below.
