Atomic Swap

An atomic swap is a protocol that enables two parties to exchange assets across different blockchains without a trusted intermediary. It relies on hash time-locked contracts (HTLCs), which ensure that the transaction is completed within the set timeframe. There are two types of atomic swaps: on-chain swaps between two different cryptocurrencies on two seperate blockchains, and off-chain swaps on second-layer channels off a main blockchain, such as the Lightning Network.

Related Intelligence

This term is explored in depth in SBI-002.