How Does the Concept of 'Hash Time-Locked Contracts' (HTLCs) Facilitate Atomic Swaps? ▴ Learn

How Does the Concept of ‘Hash Time-Locked Contracts’ (HTLCs) Facilitate Atomic Swaps?

HTLCs are the foundational technology for atomic swaps. They use a cryptographic hashlock to ensure that the recipient can only claim the funds if they know a secret (pre-image) within a set time limit (timelock).

This mechanism forces the simultaneous exchange: if one party reveals the secret to claim their funds, the other party can use the same secret to claim theirs, ensuring DVP.

How Does the Concept of “Delivery versus Payment” (DvP) Relate to Atomic Settlement?

What Is Delivery versus Payment (DVP) and How Is It Applied in Digital Asset RFQ Trades?

How Do Hash-Based Commitments, like Hash Time-Locked Contracts (HTLCs), Facilitate Cross-Chain Atomic Swaps of Options?

What Technical Mechanism Enables Atomic Swaps on a Blockchain?