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CryptoA

Atomic Swap

A trading technique that allows two parties to swap one cryptocurrency for a completely different cryptocurrency without involving a third party like a centralized exchange. Atomic swaps use hash time-locked contracts (HTLCs) to ensure that either both parties receive their funds or the transaction is fully reversed, eliminating counterparty risk. This technology is a key building block for trustless, cross-chain decentralized trading.

Example

They completed an atomic swap of Bitcoin for Litecoin directly between their wallets, with no exchange or intermediary involved.