A pop-up released by AtomicDEX from Komodo shows Ethereum holds a connection with different networks of UTXO and bitcoin.
Friday was a highlight with the launch of a new project by Komodo, namely AtomicDEX. Are you aware of the platform? Not much? It is a platform that aims at empowering the “no trust atomic swaps” within blockchains, making a connection with Ethereum at present and tokens to Dogecoin, Bitcoin, and Litecoin.
With the help of atomic swaps, users get a chance to indulge indirect trading of native tokens. Most of the people investing in ETH (Ether) and BTC (Bitcoin) together might end up exchanging coins ownership on the blockchain, eliminating representations in tokenized form as an intermediary.
Komodo developed a wallet with dedicated multiple blockchains which lay stones for the integration. It also has a feature for “atomic swap.” At 6 PM (UTC) Friday, an official launch was announced for the trading network’s beta.
When defining atomic swaps, it refers to an interaction occurring in a cross-chain type that holds a presence of special techniques in cryptography –like the ones depending upon HTLCs (hast-time locked contracts) showing an assurance that there’s a complete occurrence of two exchanges or it’s not happening in any manner. With this, one can understand that two exchange parties will perform the transaction by simultaneously swapping funds. And if there’s any part taking steps back, it results in canceling the transaction.
JC (agent of pseudonymous transactions in Komodo)speaks up while talking in an interview that the primary goal of the project is to build a connection among most of the environments in blockchain, with integrations that are upcoming including the ecosystem for Cosmos. When talking in a general manner, it’s a mechanism that works as a blockchain supporter but a manual addition is necessary for every integration. Also, a team is made to work upon the privacy of integrating XMR (Monero) coins but with a priority at a lower stage.
In the exchange, it relies on using a traditional model present in an order of decentralized books with techno-based support. It holds a contrasting relationship with the famous decentralized type of exchange in the present time, depending upon automated makers in the market like the popular Uniswap. Also, oracles in “Band Protocol” are being used within the project to set a benchmark for target prices. For plans, the team is working upon a plan for Chain Link integration, since “we can’t just get married to a single solution for oracle,” stated JC.
JC gave a reassurance on the system that it won’t hold complete control on the funds or won’t custody funds anytime within the operating mechanism, depicting that “process gets slower with decentralization, so we can’t completely bang it together.” The mechanism holds a potential limitation that is a higher level of security requirement, wherein blockchains are to be kept on the waiting list for trade confirmation, noted by JC, but it something common in the general DEXs.
In bridging the gap between tokens and blockchains, one of the valid options is atomic swaps, it’s a process existing in a centralized form because of certain technical restrictions imposed on it.