What are the advantages of Atomic Swaps?
As discussed before, Atomic Swaps are a viable alternative to existing cryptocurrency exchanges and give a superior solution to some restrictions associated with these exchanges.
However, Atomic Swaps include a great deal more. Here are many of the most well-known advantages of Atomic Swaps.
- Atomic Swap provides a viable answer to the issue of interoperability between various currencies and digital assets. Atomic Swap is the initial step in connecting various coins and cryptocurrencies and enabling them independent trading.
- It enables cost savings. How? By eliminating the fees and other costs associated with utilizing an exchange, you may save money. Occasionally, when you withdraw coins to your wallet, they may charge you hidden costs, since the pricing structures of many of these exchanges are problematic. Moreover, you are exposed to the possibility of phony and fraudulent swaps, which is not the case with Atomic Swaps.
- In most crypto transactions, particularly those involving lesser-known cryptocurrencies, you must first purchase Bitcoin as an intermediate token, which is inconvenient. For instance, if you are selling Litecoin in order to purchase Tezos, you must first purchase Bitcoin. Once you have Bitcoin, you may exchange them for Tezos by selling them. Irritating, isn’t it? Using atomic swap exchange, however, you may swap directly with the coins you own.
More Benefits:
- Atomic Swaps enables direct wallet-to-wallet trading, which makes the exchange quicker, more secure, and less expensive. This will also allow you to circumvent exchange-imposed rules.
- Atomic Swaps expedites transactions and exchanges by bypassing the processes, registration procedures, confirmations, and validations conventional exchanges need. You may complete the transaction instantly.
- Traditional centralized exchanges are often vulnerable to cyberattacks or hacks. The method is safe since there is no third party engaged in the Atomic Swap and the link between the two sides is encrypted.
- Atomic Swaps allow you to swap cryptocurrencies and coins in a decentralized, fee-free, and trustless environment.
- Investors may diversify their portfolios as a result of a simpler, quicker, and less expensive means of exchanging cryptocurrency. The majority of consumers currently invest in one or two cryptocurrencies and avoid swapping them due to the associated costs and risks. Using Atomic Swaps, exchanging cryptocurrencies is almost free and risk-free.
- As opposed to crypto exchanges, you are not required to disclose personal information or through a verification procedure, allowing you to maintain your anonymity.
What is the Future of Atomic Swaps?
For the time being, atomic swaps are a good option for cryptocurrency traders. Emerging decentralized exchange technology is improving and gaining popularity.
Atomic Swap will play a crucial part in the trade as the blockchain and cryptocurrency sector shifts towards the decentralized world, which is more than evident.
The Last Words
Atomic Swap offers crypto investors a way to diversify their holdings. The technology is cheaper, faster, and more secure than exchanges.
However, the technology may not be widely available for a time. Few wallets and coins are scalable and interoperable.
Atomic Swap has the potential to revolutionize the way we trade online in the following years, and potentially revolutionize online cryptocurrency trading. There are some success stories, like the Atomex, a wallet with built-in hybrid atomic swap exchange between practically all tokens and currencies.
