Can Atomic Settlement Be Applied to Cross-Chain Derivative Trades?
Yes, but it requires sophisticated technology like cross-chain bridges or specialized protocols (e.g. using HTLCs or similar cryptographic proofs) to achieve atomicity. Since different blockchains cannot communicate natively, an intermediary mechanism must be used to guarantee that the derivative's execution on one chain is conditional on the corresponding action on the other chain, ensuring a single, atomic outcome.
Glossar
Atomic Settlement
Execution ⎊ The simultaneous exchange of assets occurs only when all predefined conditions of a smart contract are met.
Specialized Protocols
Protocol ⎊ Specialized protocols, within the convergence of cryptocurrency, options trading, and financial derivatives, represent bespoke communication and execution frameworks designed to address unique market inefficiencies and regulatory constraints.
Cross-Chain
Transfer ⎊ Cross-chain capability refers to the mechanism enabling the atomic movement of digital assets and data between distinct, sovereign blockchain networks.