On October 7, 2017, the decentralized cryptocurrency trading platform Altcoin Exchange announced the team performed the first atomic swap between the Ethereum and Bitcoin blockchains. The exchange says this is the startup’s first step towards creating a trustless exchange process.
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Altcoin Exchange Performs the First Atomic Swap Between Bitcoin and Ethereum
In the cryptocurrency space, atomic swaps are a pretty hot topic, and there are only a few blockchains that have exchanged this way. Atomic swaps allow two parties to transact between two blockchains in a trustless manner without counterparty risk. So far only a few altcoins have performed this function with bitcoin; including currencies like litecoin, decred, and vertcoin. On October 7th the Altcoin Exchange development team processed a swap between both bitcoin and ethereum networks.
“We have completed the very first Ethereum <> Bitcoin atomic swap! More details coming soon,” the Altcoin Exchange team announced this week.
The Altcoin Exchange team transferred 0.12345 ETH for 0.12345 BTC using an on-chain open source process. Altcoin Exchange plans to launch the project’s Github repository this Tuesday, the company’s CEO Andrew Gazdecki told news.Bitcoin.com.
The Centralized Trading Model Will Soon Be a Memory of the Past
Gazdecki tells us that decentralized exchanges are the “future of cryptocurrency trading” and atomic swaps will be a big part of the business model. Altcoin Exchange believes the team’s demonstration of an atomic swap between ethereum and bitcoin means the centralized trading model is soon to be a memory of the past. Gazdecki explains that atomic swaps will replace traditional exchange transactions with a more secure method and just as speedy.
Since 2011 Twenty Six Cryptocurrency Exchanges Bit the Dust – Altcoin Exchange Believes Atomic Swaps Will Prevent These Losses
The team at Altcoin Exchange says they still has some work to do with the code as far as privacy and order matching comes. The group says they are also thankful for the decred development team and Litecoin’s Charlie Lee for help pioneering the atomic swap effort.
“Since June of 2011, 26 exchanges have been compromised, resulting in the loss of millions of dollars worth of coins. To prevent more of these types of hacks, decentralized exchanges are needed, and atomic swaps bring us one step closer to achieving this goal,” Gazdecki explains to news.Bitcoin.com.
What makes the technology behind Atomic Swaps so exciting is it allows for nearly instant direct trades between cryptocurrencies. We believe this to be a critical component for creating a truly decentralized exchange that executes transactions at the same speed in which centralized exchanges are able to but without the risk of hacking and theft.
The atomic swaps performed by Altcoin Exchange between the bitcoin and ethereum blockchains can be viewed here with the swap initiation, the participation, and redeem A and redeem B.
What do you think about the first atomic swap between bitcoin and ethereum? Let us know in the comments below.
Images via Shutterstock, the Altcoin Exchange, and Pixabay.
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