Komodo’s AtomicDEX attempts to join Ethereum with Bitcoin along with other UTXO networks.
The system seeks to empower trustless nuclear swaps between distinct blockchains, now linking Ethereum and its predecessors to blockchains such as Bitcoin, Litecoin and Dogecoin.
Using nuclear swaps enables users to exchange directly with the native tokens.
The integration comes inside a committed multiblockchain pocket constructed by Komodo, which comprises the nuclear swap attribute.
Atomic swaps are a sort of cross-chain interaction in which particular cryptographic techniques — typically based on hash-time secured contracts, or HTLCs — make sure that two transports occur entirely or not at all. It follows that two parties in a market transaction will swap capital concurrently, and when either party backsdown the trade is canceled.
In a dialogue with Cointelegraph, Komodo’s pseudonymous principal operating officer, also called JC, stated the project intends to join most blockchain surroundings, with impending integrations such as the Cosmos ecosystem and Qtum. Generally, the mechanism may support just about any type of blockchain, though every integration has to be used manually.
The market uses a classical version of a decentralized arrangement publication encouraged by torrent-based technology. That is compared to the most popular sort of decentralized market now, dependent on automated market manufacturers such as Uniswap. The job can be utilizing Band Protocol oracles for establishing target costs, though for resources not endorsed by the oracle system the machine is based on CoinGecko. Later on, the group is likely to incorporate Chainlink,”because we do not need to be married to only 1 oracle alternative just,” said JC.
JC asserted that the machine doesn’t control or custody capital at any moment in the mechanics, noting “Decentralization slows down the [development] procedure, we can not simply slap it all together” 1 possible drawback of this mechanism is that the need for greater safety, which requires awaiting blockchains to validate the transaction, JC mentioned, although this is normal to DEXs generally.
Atomic swaps can be a legitimate choice to bridging tokens to additional blockchains, a procedure that’s normally centralized as a result of technical constraints. By way of instance, a lot of popular Bitcoin wrappers around Ethereum are eased by custodial brokers, like BitGo at the event of Wrapped BTC (WBTC). At precisely the exact same time, wrap a token simplifies the procedure for using it on a different blockchain, as once first liquidity barriers are overcome, it turns into a relatively seamless procedure. The DeFi boom has enabled Wrapped BTC to achieve wide approval , which makes it simple to swap or utilize in financing protocols.
There might be liquidity hurdles for nuclear swap systems also, but the alternative might be especially appealing for purists who don’t want to rely on centralized entities restarting the token’s issuance.
