In nutshell, it is all about a DEX which supports more than one blockchain?
Could you please explain a little more on what is HTLC technology and how it differs from the other technology on which the most currently existing DEX are working? I tried to google on it but concluded with not nothing specific to applications on decentralized exchanges. So, it would be much helpful if you take to enlighten on your technology.
Have you got ANN for your business? If not, please go for it on both of these boards:
Service Announcements.
Service Announcements (Altcoins).
Could you please explain a little more on what is HTLC technology and how it differs from the other technology on which the most currently existing DEX are working? I tried to google on it but concluded with not nothing specific to applications on decentralized exchanges. So, it would be much helpful if you take to enlighten on your technology.
Have you got ANN for your business? If not, please go for it on both of these boards:
Service Announcements.
Service Announcements (Altcoins).
Thanks, I will open topics there as well.
About HTLC - hash time locked contracts. This is a very simple infographic https://medium.com/jelly-market/atomic-swaps-the-what-and-the-how-65f7afe3a242
Actually it was first introduced here in 2013 https://bitcointalksearch.org/topic/m.2003765
In short:
Atomic Swaps’ main goal is to eliminate the middleman, while at the same time they guarantee that unpleasant scenarios like the following one won’t happen:
Let’s say that Alice and Bob want to exchange BTC for ETH. Alice sends her BTC to Bob, and then she expects Bob to send his ETH to her in order to finalize the exchange. But Bob has the option of going back on his end of the bargain once he receives the BTC, ending up with both sets of coins. Alice has become a victim of fraud because she didn’t have any guarantee that Bob will fulfill his part of the bargain.
To avoid fraud, atomic swaps simply lock the two transactions (once they are submitted to the blockchain), so that they can be unlocked (and executed) only when certain requirements are met. If one of the two parties steps back on his end of the bargain, the funds will be returned to the sender.
The Hashed Time Locked Contracts lock the transaction twice, making it extremely secure. We end up with Time Locked and Hash Locked transaction at the same time.
Time Locked:
The receiver has a limited amount of time to confirm on the blockchain that he has received the funds. It guarantees that the blockchain will reverse the transaction if the receiver never confirms it and the assets will be sent back to the sender.
Hash Locked:
A special secret key (different from the private key) is created by the sender. Then a hash is derived from the secret key. The hash will make sure that no one can guess the secret. While the key remains secret, the hash is public, but it is a one-way process — there is no way to go back from the hash and reveal the secret key. The secret key is the only piece of information that can unlock the transaction. Hence the receiver needs to get the secret key in order to get the funds. This is how it happens:
1. Alice has BTC, Bob has ETH
2. Alice creates a secret key consisting of random letters, words or numbers.
3. A hash is created from Alice’s secret key
4. Alice submits a transaction on the Bitcoin blockchain which is sent to Bob’s address. It is locked in both terms of time (where Bob has a certain amount of time to confirm it) and in terms of security (with the hash).
5. Alice sends the hash to Bob
6. Now it is time for Bob to create his Ethereum transaction to Alice (again it is both time and hash locked, where the hash is the same as Alice’s). As a result, we have two transactions on both the Ethereum and the Bitcoin blockchains which are locked with the same hash.
7. Alice unlocks Bob’s Ethereum transaction (because she holds the secret key). By unlocking his transaction, Alice automatically reveals the secret key and it is publicly recorded on the blockchain.
8. Bob can now see the secret key and unlock the Bitcoin transaction which was aimed at him.
9. They have exchanged assets without the need to trust or know each other.
