Here is an article in which Bitcoin Atomic Swaps Stand Out In Simple Words:
Ethereum: Can someone eli5 (explain how I 5) for Bitcoin atomic swaps?
Imagine you have some money, let’s say 100 US dollars and want to buy a toy from your friend. You still don’t know what the toy costs, so make a deal with your boyfriend: “Hey, I give you my money (100 us dollars), but in return I get 10 toys.”
The Problem
Suppose there are two children in this game: Player 1 and Player 2. You want to buy the toy from players 1, but you are not reading to pay your price of $ 100 immediately.
To get a deal up and run, you need something like “Atomic Swaps”. Atomic swaps are like magical offers that can be made without actually sending money between you and your boyfriend.
What is an atomic exchange?
A nuclear exchange is a kind of transaction in Bitcoin (and other cryptocurrencies), in which two parties agreement to exchange different cryptocurrency quantities for each other. IT’S Called “Atomic” because it shall be heard like magic!
This is how it works:
- You create a new transaction on the blockchain with the inscription: “Give me 100 Bitcoin, but only if you give me some other coins.”
- Your friend creates a similar transaction with the inscription: “Take 10 coins and give me.”
3 .. Both send their transactions to the network.
- The Network Checks Both Transactions (Check for Errors).
- As soon as everything is verified, the transaction is brought together to the blockchain.
The Magic Passes
Things are interesting here. Since atomic swaps contain two different transactions, the network must find out how to be solved. This is called “rebalancing”.
Imagine that you have 100 us dollars in a transaction and another 100 US dollars in a different transaction. How do you get your coins back?
To remedy this, a new transaction can be created, in which: “Take 10 coins from me (in the first transaction) and give it to my friend (in the second transaction). This transaction is referred to as” Atomic Exchange “.
why atomic swaps are important
Atomic swaps have many advantages:
- You make it easy for people to buy and sell cryptocurrencies without having to wait for each other.
- You reduce the amount of money that must be transferred between individuals.
- They enable quick and safe transactions thanks to complex cryptography.
Diploma
In summary, nuclear waps are a kind of transaction in Bitcoin (and other cryptocurrencies), in which two parties agreed to Exchange different cryptocurrency quantities for each other. It’s like a magical deal that snowfenly happens on the blockchain! By using atomic change, people can buy and sell cryptocurrencies without having to wait for each other, which makes it easier and faster.
I hope this explanation helped you to understand Bitcoin atomic swaps a little better!
