Skip to main content

What Is the Concept of ‘Atomic Swaps’ in Decentralized Finance (DeFi)?

Atomic swaps are peer-to-peer cryptocurrency trades executed directly between different blockchains without the need for a centralized exchange or intermediary. They use smart contracts and Hash Time-Locked Contracts (HTLCs) to ensure that both parties either receive the other's currency or neither does, eliminating counterparty risk.

How Does a Clearing House in Traditional Finance Compare to the Role of a Blockchain in Trade Settlement?
What Role Do Decentralized Exchanges (DEXs) Play in Crypto Options Trading?
What Is a Decentralized Exchange (DEX)?
How Does a Decentralized Exchange (DEX) Facilitate the Trading of Tokenized Derivatives?