What are atomic swaps?

Atomic swaps are also called cross-chain atomic swaps. An atomic swap is a cryptocurrency exchange between two parties that wish to exchange tokens from different blockchains. Atomic swaps are helpful if you only have one cryptocurrency but need to use another in a transaction.

What is atomic swap Litecoin?

The atomic swap technology was brought to life in 2017 by Charlie Lee, who founded Litecoin, when he tweeted about how he “ did a cross-chain atomic swap with LTC/BTC ” and exchanged 10 LTC (Litecoin units) for 0.1167 BTC (Bitcoin units).

Can a decentralized exchange conduct atomic swaps?

Decentralized exchanges can conduct atomic swaps for you. A decentralized exchange (DEX) has no central authority regulating it; it is a platform you can trade on without third parties. You can also choose from cross-chain swap providers, where you transfer your digital assets into another wallet, conduct the swap, and transfer them back out.

Why do we need special wallets to conduct an atomic swap?

Special wallets or exchange services are needed to conduct an atomic swap because the technique is still being developed and refined. Each cryptocurrency is supported by a blockchain, designed only to accept transactions in specific tokens. For example, Bitcoin (BTC) has a blockchain, and ETH (ether) has another.