It's certainly awesome technology as far as trading goes, but I don't think it will kill off exchanges at all. Some people dislike peer-to-peer trading because it's usually less convenient than buying/selling at an exchange. Bitcoin trading, for example, don't necessarily require the use of exchanges anymore because so many people are buying and selling it via platforms like Localbitcoins, but people still seek them anyway.
I'm not sure if it will make trading drastically different as I see it more of a quality of life enhancement (it lets you save escrow fees, exchange fees, and time, etc.) rather than an actual necessity.
Topic: Will atomic swaps replace crypto currency exchanges? - page 3. (Read 550 times)
Was recently going through a article about atomic swaps which was rather a new and interesting concept for me. I do understand at a macro level of how such a technology could impact the transfer of one cryptocurrency to another without the aid of an exchange but I fail in my understanding how this would render crypto currency exchanges as being obsolete? How will this affect trading activities if this technology takes over and adopted in coming years? Would appreciate if someone with good insight to explain this to me!
For anyone who is not familiar with this concept or a crypto newbie I have tried summarizing the article in my words.
1. Atomic swaps is a concept that claims to allow for the direct, peer-to-peer transfer of cryptocurrencies across different blockchains.
2. Atomic swap has been a concept having its presence for several years though the real implementation or focus of developers to bring it to force is
seen rather recently. The compelling reason for this shift is predominately due to the increased focus on cryptocurrencies which has attracted the
interest of not just the investors but also the interest of hackers as well.
3. Since the advent of cryptocurrencies there have been quite a few notable crypto currency exchange hacks and as the world moves further with this
industry its no secert that the currently functioning exchanges are under immense threat of holding their customer funds. Basically having money on
exchanges is like giving up custody of your assets to a third party. Atomic swaps seems to be addressing this problem by enabling users to hold their
private keys without relying on others.
4. As per the article atomic swaps currently do happen and that is between different blockchains built on similar code (decred, litecoin & bitcoin-
executed) and swaps between cryptocurrency tokens on the same blockchain with decentralized exchanges such as OX. However cryptocurrencies
running on blockchain with much different code has to have purpose built tools for these atomic swaps to take place.
5. Apparently creating atomic swaps between cross chain platforms are highly complex and some say its not gonna happen in the next few months.
For anyone who is not familiar with this concept or a crypto newbie I have tried summarizing the article in my words.
1. Atomic swaps is a concept that claims to allow for the direct, peer-to-peer transfer of cryptocurrencies across different blockchains.
2. Atomic swap has been a concept having its presence for several years though the real implementation or focus of developers to bring it to force is
seen rather recently. The compelling reason for this shift is predominately due to the increased focus on cryptocurrencies which has attracted the
interest of not just the investors but also the interest of hackers as well.
3. Since the advent of cryptocurrencies there have been quite a few notable crypto currency exchange hacks and as the world moves further with this
industry its no secert that the currently functioning exchanges are under immense threat of holding their customer funds. Basically having money on
exchanges is like giving up custody of your assets to a third party. Atomic swaps seems to be addressing this problem by enabling users to hold their
private keys without relying on others.
4. As per the article atomic swaps currently do happen and that is between different blockchains built on similar code (decred, litecoin & bitcoin-
executed) and swaps between cryptocurrency tokens on the same blockchain with decentralized exchanges such as OX. However cryptocurrencies
running on blockchain with much different code has to have purpose built tools for these atomic swaps to take place.
5. Apparently creating atomic swaps between cross chain platforms are highly complex and some say its not gonna happen in the next few months.
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