Atomic Swaps
Atomic swaps enable two parties who don’t know or trust each other to trade without a trusted third party. Through smart contract escrows, the atomic swap is guaranteed to either execute successfully or refund the parties involved. By eliminating a third party intermediary, atomic swaps offer traders greater security, privacy, and cost-savings.The smart contracts used for Liquality’s atomic swaps are completely user-owned-and-deployed. It is impossible for us to add middlemen fees, censor your transaction, or activate a kill switch, like most other “decentralized” exchanges.
Atomic Swaps Explained: What They Are, How They Work, and Why They Are Important
Hash Time Locked Contracts (HTLCs)
HTLCs form the foundational primitives for applications such as atomic swaps, the Lightning Network, and more. Their role as time-bound conditional escrows for transactions significantly reduce counterparty risk for traders. Liquality HTLCs are based on the battle-tested standards BIP199 and ERC1630, which are highly secure, have the lowest fees, and are interoperable with future HTLC-based applications.
Hash Time Locked Contracts (HTLCs) Explained