Steemit Inc has just announced the idea of connecting the Steem and TRON Blockchain with Cross-Chain Atomic Swaps, the announcement is here.
What are Cross-Chain Atomic Swaps?
A Cross-Chain Atomic Swap is a mechanism that enables one cryptocurrency to be exchanged for another, without having to use an exchange as a centralised intermediary. The use of centralised intermediaries can pose a risk such as previous examples of hacks and mismanagement. The exchange process has not been communicated but could involve smart contracts and allow users to effectively trade tokens from their existing blockchain wallets.
The swaps will allow the quick exchange of STEEM and TRX, running on two distinctly different and substantial blockchains.
Benefits
- Peer to Peer
- Trustless
- Increased Security
- Accessibility (not all exchanged support all cryptocurrency listings)
- Speed (not having to transfer via intermediary coins)
Limitations
- Will there be enough Liquidity (requires counterparties willing to trade)
- Relatively new idea so could be high initial cost of implementation
Opinion
The news is an extremely positive development that will be discussed further over the next two weeks. Having a highly motivated co-development team from both Steemit Inc and Tron Developers will assist in velocity and demonstrating to the market the powerful partnership being developed by the two blockchains.
Thanks @cryptocurator for this clear and concise explanation of Atomic Swaps.
Are there many examples of Atomic Swaps already in operation on different chains?
I am wondering how the limitation you mention of Liquidity will play out...
I have read of them being in operation on Litecoin-Decred ; and Eth-Doge : https://blockgeeks.com/guides/atomic-swaps/ ……..I think it is watch this space on liquidity, with a tonne of domain knowledge across the eco-systems someone will find an inventive solution to liquidity!
Definitely one to watch...
#posh post on twitter: