Hey Steemersđź‘‹
Pradeep Here,
Today I will acknowledge you about "Atomic Swap".
So,
What is an Atomic Swap?
Atomic swap is a platform on Lightning Network which allows exchanging the cryptocurrencies from one network to another. (I will not be covering Lighting network here)
How Does It Work?
As I told you that it works on the platform of Lighting network.
In a Simple way, we can say that it works similarly as an exchange but there are some advanced features which make Atomic swap different from a common exchange.
Then What are those features?
Instant Payment: - Since Atomic Swap works on the blockchain we can do instant payments without any block confirmation time which makes the Atomic Swap quite faster than other exchanges.
Scalability:- It's my favourite feature that can handle millions and billions of transactions at a time which shows how powerful this technology is.
Low Cost:- There are very nominal fees which makes this platform more reliable.
Security and trust: - As we understood that there is a peer to peer transaction going on this platform, so how can we say it's secure let me make you clear it with an example.
Suppose Pradeep and Pankaj are two people having 1 BTC with Pradeep and 1400 QTM with Pankaj. They both want to exchange there cryptos but they don't trust each other.
Now,
They both used the Atomic Platform and agreed to exchange their faucets.
Pradeep will release his 1 BTC to the Atomic Swap with a keyword, let's suppose keyword is 'ALARM'. On the other hand, Pankaj will release his 1400 QTM on the Atomic Swap. Here they both released there Faucets but no one will get their exchanged faucet until Pradeep reveals the keyword i.e. 'ALARM'.
The Moment Pankaj Enters the keyword the transaction gets completed and they both will receive their faucets.
They are now happy because Both of them have done a transaction without any fear to loose their faucets.
I think this is one of the best ways to exchange the faucets without getting in trouble of exchange's rules and loss.