The Komodo venture launched on Friday the general public beta of its newest product, AtomicDEX. The platform seeks to allow trustless atomic swaps between totally different blockchains, presently connecting Ethereum and its tokens to blockchains like Bitcoin (BTC), Litecoin (LTC) and Dogecoin (DOGE).
Utilizing atomic swaps permits customers to commerce immediately with the native tokens. Somebody shopping for Ether (ETH) with BTC would simply trade possession of the respective cash on their blockchains, with out having to make use of middleman tokenized representations.
The mixing comes inside a devoted multi-blockchain pockets constructed by Komodo, which incorporates the Atomic Swap function. The beta of the buying and selling system has formally launched on Friday at 6 PM UTC.
Atomic swaps are a kind of cross-chain interplay the place particular cryptographic methods, normally primarily based on hash-time locked contracts, or HTLCs, be sure that two transfers both happen utterly or by no means. Which means two events in an trade transaction will swap funds concurrently, and if both occasion backs down the transaction is cancelled.
In a dialog with Cointelegraph, Komodo’s pseudonymous chief working officer often called JC, stated that the venture goals to attach most blockchain environments, with upcoming integrations together with the Cosmos (ATOM) ecosystem and Qtum. Basically, the mechanism can assist virtually any form of blockchain, although every integration should be added manually. The staff can also be engaged on integrating privateness coin Monero (XMR), although with a decrease precedence.
The trade makes use of a extra classical mannequin of a decentralized order ebook supported by torrent-based applied sciences. That is in distinction to the most well-liked sort of decentralized trade at this time, primarily based on automated market makers like Uniswap. The venture can also be utilizing Band Protocol oracles for setting goal costs, although for belongings not supported by the oracle community the system depends on CoinGecko. Sooner or later, the staff is planning to combine Chainlink, “as we don’t must be married into only one oracle answer solely,” stated JC.
JC reassured that the system doesn’t custody or management funds at any level within the mechanism, noting that “decentralization slows down the [development] course of, we will’t simply slap bang all of it collectively.” One potential downside of the mechanism is the requirement of upper safety, which requires ready for blockchains to substantiate the commerce, JC famous, although that is widespread to DEXs basically.
Atomic swaps could be a legitimate various to bridging tokens to different blockchains, a course of that’s normally centralized because of technical limitations. For instance, many in style Bitcoin wrappers on Ethereum are facilitated by custodial brokers, like BitGo within the case of Wrapped BTC. On the similar time, wrapping a token simplifies the method of utilizing it on one other blockchain, as as soon as preliminary liquidity hurdles are overcome, it turns into a comparatively seamless course of. The DeFi growth has allowed Wrapped BTC to reach wide acceptance, making it simple to swap or use in lending protocols.
There could also be liquidity hurdles for atomic swap platforms as properly, however the answer could possibly be notably engaging for purists who don’t want to depend on centralized entities overseeing the token’s issuance.