The Komodo undertaking launched on Friday the general public beta of its newest product, AtomicDEX. The platform seeks to allow trustless atomic swaps between totally different blockchains, at the moment connecting Ethereum and its tokens to blockchains like Bitcoin, Litecoin and Dogecoin.
Utilizing atomic swaps permits customers to commerce straight with the native tokens. Somebody shopping for Ether (ETH) with Bitcoin (BTC) would simply alternate possession of the respective cash on their blockchains, with out having to make use of middleman tokenized representations.
The combination comes inside a devoted multiblockchain pockets constructed by Komodo, which incorporates the atomic swap function. The beta of the buying and selling system formally launched on Friday at 6 pm UTC.
Atomic swaps are a kind of cross-chain interplay the place particular cryptographic methods — often primarily based on hash-time locked contracts, or HTLCs — be certain that two transfers both happen fully or in no way. Which means that two events in an alternate transaction will swap funds concurrently, and if both get together backs, down the transaction is canceled.
In a dialog with Cointelegraph, Komodo’s pseudonymous chief working officer, generally known as JC, mentioned that the undertaking goals to attach most blockchain environments, with upcoming integrations together with the Cosmos ecosystem and Qtum. Usually, the mechanism can help virtually any form of blockchain, although every integration should be added manually. The staff can also be engaged on integrating privateness coin Monero (XMR), although with a decrease precedence.
The alternate makes use of a extra classical mannequin of a decentralized order guide supported by torrent-based applied sciences. That is in distinction to the preferred kind of decentralized alternate right this moment, primarily based on automated market makers like Uniswap. The undertaking can also be utilizing Band Protocol oracles for setting goal costs, although for property not supported by the oracle community the system depends on CoinGecko. Sooner or later, the staff is planning to combine Chainlink, “as we don’t must be married into only one oracle answer solely,” mentioned JC.
JC reassured that the system doesn’t custody or management funds at any level within the mechanism, noting that “Decentralization slows down the [development] course of, we will’t simply slap bang all of it collectively.” One potential downside of the mechanism is the requirement of upper safety, which requires ready for blockchains to substantiate the commerce, JC famous, although that is widespread to DEXs generally.
Atomic swaps generally is a legitimate different to bridging tokens to different blockchains, a course of that’s often centralized as a consequence of technical limitations. For instance, many in style Bitcoin wrappers on Ethereum are facilitated by custodial brokers, like BitGo within the case of Wrapped BTC (WBTC). On the identical time, wrapping a token simplifies the method of utilizing it on one other blockchain, as as soon as preliminary liquidity hurdles are overcome, it turns into a comparatively seamless course of. The DeFi increase has allowed Wrapped BTC to reach wide acceptance, making it straightforward to swap or use in lending protocols.
There could also be liquidity hurdles for atomic swap platforms as effectively, however the answer may very well be notably enticing for purists who don’t want to depend on centralized entities overseeing the token’s issuance.