Blockchain Education: Atomic Swaps | Wallet Connect HotFix | Trending | SafeMoon Gaming: Today's Events [World of Warcraft & Overwatch] - Thursday's Event: [World of Warcraft] | Food for Thought | Reminders
Recently, we touched on atomic swaps as one of the methods used to improve blockchain interoperability. Here’s a deeper dive into atomic swaps and how they work.
What is an atomic swap?
Atomic swaps, also known as cross-chain atomic swaps, are self-executing and automated cryptocurrency exchange contracts and facilitate peer-to-peer trading of cryptocurrencies across separate blockchains. The purpose of this approach is to eliminate a centralized middleman and provide token holders with complete autonomy.
The term "atomic" comes from the concept of an "atomic state," which refers to a state that is either true or false with no substates. This applies to the state of the cryptocurrency transaction, which either happens or doesn't. These contracts typically use smart contracts, which are blockchain programs that activate when specific conditions are met. In the case of an atomic swap, the parties must agree to the trade before a timer runs out, and the use of a smart contract ensures that neither party can steal the other's cryptocurrency.
How do atomic swaps work?
Atomic swaps use Hash Timelock Contracts (HTLCs) to automate the exchange of tokens. HTLCs are time-bound smart contracts between parties that require both parties to acknowledge receipt of funds within a specified timeframe. The HTLC-generated contract includes two security features: HashLock and TimeLock.
HashLock technology allows the contract to be locked with a unique key that only the currency depositor can access. The deposited currency can only be unlocked with this key, ensuring authenticity. TimeLock ensures that the transaction is completed within a specified time frame and returns funds to the depositor if it is not completed, securing the transaction through time constraints.
Once both parties agree on the exchange, a smart contract program executes the trade. The transaction is then recorded in the blockchain and validated by network nodes. In general, swaps are contractual agreements between two parties that are binding and not easily reversible. Reversing a swap is dependent upon the specific terms and conditions of the contract. Atomic Swaps are typically designed to be non-reversible once the transaction has been executed on the blockchain, and both parties must agree to another transaction to exchange the tokens again if they would like them back. This eliminates the risk that one party may accept the offered coins but decline to transfer them.
Advantages of Atomic Swaps:
Offers complete control and independence to traders, avoiding the need for centralized exchanges.
Offers increased security and assurance with HashLock and TimeLock technologies in HTCL contracts.
Reduces operational costs and trading fees associated with centralized exchange platforms.
Allows for flexibility in altcoin trading, enabling almost all types of altcoins to be traded.
Disadvantages of Atomic Swaps:
Can be complex and require more stringent trade conditions than centralized exchanges.
Privacy issues arise due to longer transaction times and active blockchain networks, allowing hackers to potentially interrupt the process and gather private information.
Lack of convenience when it comes to exchanging fiat currency for cryptocurrency as it cannot be done through atomic swaps.
In short, while atomic swaps have disadvantages, they offer several advantages, including increased security, cost-effectiveness, and flexibility in altcoin trading. However, traders must be aware of the complexities and potential privacy issues that come with this technology.
Still curious? Check out this video to learn more!
Frankenfield, J. “Atomic Swaps: Definition, How It Works With Cryptocurrency Trade.” Investopedia. (14 Aug, 2022). https://www.investopedia.com/terms/a/atomic-swaps.asp
“Atomic Swaps.” CFI. (1 Feb, 2023). https://corporatefinanceinstitute.com/resources/cryptocurrency/atomic-swaps/
Frankenfield, J. “Atomic Swap.” Investopedia. (14 Aug, 2022). https://www.investopedia.com/terms/a/atomic-swaps.asp#:~:text=Environmental%20Policy%20%26%20Management.-,What%20Is%20an%20Atomic%20Swap%3F,give%20token%20owners%20total%20control.
"What are Atomic Swaps?" Horizen Academy. https://www.horizen.io/academy/atomic-swaps/#:~:text=Atomic%20Swaps%20present%20an%20alternative,the%20heart%20of%20Atomic%20Swaps Accessed 27 Mar, 2023.
Attention iOS Users Over the weekend, the Wallet Connect team performed a hotfix. WalletConnect is now working with the internal browser.
◼️When connecting to dApps via WalletConnect on your iOS device, be sure to connect using the new black logo. ◻️The old white logo may still appear for a time.
Recently, SafeMoon was trending on Twitter with 23.4k Tweets!
To join in on gaming events, head over to the SafeMoon Gaming Discord at the event's scheduled time.
🗓️ Today's Events:
🔥 World of Warcraft
Come run Vault of the Incarnates at 3 pm MDT | 5 pm EST | 10 pm GMT.
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🗓️ There are no events scheduled for tomorrow!!
🗓️ Thursday's Event: World of Warcraft
We'll be playing WoW at 3 pm MDT | 5 pm EST | 10 pm GMT.
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March SafeMoon Gaming Event Calendar
💭 Food For Thought
“The ability to discipline yourself to delay gratification in the short term in order to enjoy greater rewards in the long term, is the indispensable prerequisite for success.”
- Brian Tracy
"Small thinking has and always will be punished in one way or another."
- Grant Cardone
"This fork in the road happens over a hundred times a day, and it's the choices that you make that will determine the shape of your life."
- Liz Murray
SafeMoon Special - Hello Again
SafeMoon Pulse Monthly Recap
Each month, the SafeMoon Pulse offers a comprehensive SafeMoon overview of the previous month, including any updates or changes you might have missed. The latest issue of the SafeMoon Pulse is now available, covering all the important information from the month of January 2023.
Let's recap the month of January! The video is below, or if you prefer reading, you can access the Pulse article here.
SafeMoon Wallet: How to Sell Crypto Guide
SafeMoon Orbital Shield
SafeMoon released a technical explanation of their patent-pending security product, SafeMoon Orbital Shield.
Need a slightly more simplified explanation?
What is PoA, and what are its advantages?
Learn more by clicking the image below.
Recent Captain's Logs
SafeMoon CEO John Karony talks about SafeMoon's Centralized Exchange
(CEX) progress in the Captain's Log video below.
CEO John Karony gave a quick update on the SafeMoon blockchain explaining a bit about the chosen consensus mechanism and release expectations.
Token Monetization Innovation (TMI)
SafeMoon has released a new patent pending feature designed to improve the user experience on its DEX (Decentralized Exchange - SafeMoon SWaP), labeling the feature TMI (Token Monetization Innovation).
TMI aims to improve transparency and transaction predictability by charging the exchange fees upfront in the native token and using smart contracts to ensure transparency in token liquidity pairings. It also aims to expand the availability of web3 and enable additional community partnerships with meaningful projects.
TMI SafeMoon Newsletter Captain's Log.
Attention pSafeMoon holders ONLY.
The pSFM Migration Campaign is now LIVE!
Only use the official dApp link on the SafeMoon Website.⚠️
Have the tokens you want to use for migration in your wallet.
Don't transfer after the cutoff date/time
Have a small amount of ETH for gas fees
Tokens acquired in wallets after the cutoff date/time won't be eligible