The first ever off-chain atomic swap between Bitcoin and Litecoin has been efficiently completed, in step with information resources. The swap is especially essential as it became made off chain, which means that ownership of the digital currencies modified hands, but there was no transaction recorded on both Blockchain.
Litecoin founder, Charlie Lee, said:
“Preceding atomic swaps that I’ve done had been on-chain, and had the on-chain barriers of slow transactions and high transaction expenses. Off-chain atomic swaps are considerably better. They’re instantaneous, have low expenses, and better defend one’s privacy.”
This system would permit customers willing to attach among chains the possibility to pass digital currencies while not having to await the on-chain confirmations, and with decrease expenses. This connection could produce quite quicker transactions for Bitcoin, in addition to a simple but elegant way to the continued scaling debate amongst fans.
The opposite huge advantage to such transactions is that they’re efficaciously completely nameless. Because they depart no trace on both chain but are entire, they’re untraceable in any form. Such privateness is something that is being pursued by ZK options on the Ethereum chain.
Konstantin Gladych, the chief executive Officer of Changelly, stated:
“Changelly is a centralized exchange processing huge transactions for the fairest charges in the marketplace. We’re keen at the concept of atomic off-chain swaps as a new evolution step offering danger-free p2p OTC offers. However, it can’t absolutely replace the present environment thus far.”