Atomic Swap

An Atomic Swap is a peer-to-peer, trustless exchange of two different cryptocurrencies on separate blockchain networks, executed simultaneously via a smart contract mechanism, typically a Hash Time-Locked Contract (HTLC), ensuring that either both sides of the trade are completed or neither is. This technology eliminates the need for a centralized intermediary, such as a cryptocurrency exchange, thereby reducing counterparty risk and enhancing decentralization in cross-chain trading.