Atomic swaps blockchain

By Marco Cavicchioli - 2 Dec We thank elizabethereum and all other contributors for their incredible work! Arbitrum is one of the best second layer solutions out there for Ethereum, along with Polygon. The high number of transactions that have to be registered on the Ethereum blockchain every day causes very high fees and sometimes long confirmation times.



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WATCH RELATED VIDEO: What Are Atomic Swaps? Explained in Plain English

What Are Atomic Swaps? The Most Comprehensive Guide Ever!


This post-mortem article deals with the atomic swap exploit on the DeFiChain network that was brought to light on 2 January In the following sections, we will discuss what has happened, the various solutions to it, and most importantly — underscore the fact that all your dBTC are still backed.

Upon investigation, the developers found out that an attacker has managed to exploit a bug in the atomic swap function of the DeFiChain blockchain that seems to have existed since June Atomic swap contracts were introduced with the Eunos Upgrade in early June.

These contracts facilitate the trustless and decentralized exchange of cryptocurrencies between two distinct blockchains without having to place reliance on any intermediaries, e. After buyers and sellers have been matched, atomic swaps facilitate the creation of a so-called Interchain Swap Contract between the two parties. The way atomic swaps work is that the maker and the taker agree on a price, i. The swap fee is paid in DFI.

What has happened in this exploit was that the attacker was able to change the fee amount from DFI to BTC while keeping the actual number the same. By taking advantage of this exploit, the attacker received a multiple of what they should have received in fees i.

Well, this has to do with two main issues: the first one revolves around the fact that in the initial beta testing phase the team and the wider community were focussed on using very small token amounts to mitigate the risk of potentially losing their funds.

The culmination of small trading amounts, coupled with even smaller trading fees, was the reason that nobody really looked into those numbers and even if someone had done it, it most likely would have gone undetected. The second issue has to do with the way how the outputs of the BTC swaps are tracked and administered. To mitigate any issues ex ante, thorough testing by the community had been carried out prior to the Eunos upgrade.

On top of that, continuous testing by the community had gone on since then and not a single vulnerability had been detected. To understand why it is nearly impossible to directly see this on the blockchain has to do with the way tokens are tracked on a blockchain. There are actually two ways of doing it: The first one is the UTXO model, where coins are tracked similar to people walking into a room by a tracer.

The big disadvantage is a potential spam of the blockchain by super small amounts. The second model is the account model, similar to a doorman checking all people walking into and out of a club. This model is also used by DeFiChain. Implementing measures to counter that are very tech resource intensive and were not in the main focus and interest of DeFiChain, since other POS like decentralized assets, EVM, etc.

Blockchains like Ethereum take a similar approach, which is also why for example nobody really knows exactly how many ETH are out there. Furthermore, it is impossible to get an accurate number and everyone who is claiming a specific number is most likely wrong due to the nature of the blockchain accounting architecture. Several possible solutions have been brought up by the community and are still up for discussion:.

These ideas should be thoroughly discussed in the upcoming days by the community. The solution will then be implemented by majority vote via a DFIP vote in the next weeks, depending on the priorities of the community. The most important takeaway from this exploit is that your funds are safe. Furthermore, we would like to actively encourage the whole community to participate in a constructive discussion on all our social media channels, especially via Twitter and in our Telegram groups.

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Learn Crypto and Blockchain

It features individual unit tests as well as integration tests that trigger swaps between the different chains. First, install dependencies using npm install. The Stacks, Bitcoin, and Ethereum project files are found in their respective directories. You need to have clarinet and bitcoind in your PATH in order to run integration tests. You can also symlink Bitcoin-Qt to bitcoind. To run integration tests, simply run npm test.

Atomic swaps are automated, self-enforcing cryptocurrency exchange contracts that allow cryptocurrencies to be traded peer-to-peer without the need for a.

UK open banking allows for atomic swaps: Ethereum for pound coins

Toggle navigation. Have you forgotten your login? HAL-Inria Publications, software Arthur Micoulet 2 AuthorId : Author. Hide details. Abstract : In this paper, we consider the problem of cross-chain transactions where parties that do not trust each other safely exchange digital assets across blockchains. Open blockchains models are decentralized ledgers that keep records of transactions. They are comparable with distributed account books. While they have proven their potential as a store of value, exchanging assets across several blockchains remains a challenge. Our paper proposes a new protocol, R-SWAP, for cross-chain swaps that outperforms existing solutions.


Arbitrum: the first direct swap between Monero (XMR) and Ethereum (ETH) has taken place

atomic swaps blockchain

Processing Please wait Publication Date International Application No. International Filing Date Abstract A computer-implemented exchange method is provided.

With the growing adoption of digital assets, many will want to swap between Bitcoin and Ethereum.

Atomic swaps

Toggle navigation. Have you forgotten your login? Arthur Micoulet 2 AuthorId : Author. Hide details. Abstract : In this paper, we consider the problem of cross-chain transactions where parties that do not trust each other safely exchange digital assets across blockchains.


What is atomic swap in cryptocurrency

The past few months have been exciting for Bitcoin and cryptocurrencies. In what many observers have likened to the cryptocurrency bull run of , we have seen many cryptocurrencies increase in volume, market capitalization, and prices. Questions bothering around volatility, energy consumption, and recently, increasing transaction fees on Bitcoin and Ethereum networks are often raised about cryptocurrencies. However, just like the early days of the internet, blockchain networks continue to evolve by addressing some of these issues. In January , active Bitcoin wallets reached Without a doubt, the asset is attracting interest from both long-term believers and new investors. One of such innovations is the atomic swap.

Atomic swaps allow the exchange of cryptocurrencies across different blockchains in a way that's decentralized and non-custodial.

An Atomic Swap is a series of blockchain transactions that allows two parties to perform trustless cross-chain trading across blockchains. Alice and Bob would have to trust a third-party to conduct the trade on their behalf. With Atomic Swaps, a cross-chain trade can be completed without the need for a third-party and without any risk of loss due to the counterparty not honoring the deal.


An Atomic Swap is a smart contract technology which makes possible to exchange coins from two different blockchains without having to trust any third party, for example a centralized exchange. Atomic swaps involve each party paying into a contract transaction, one contract for each blockchain. The contracts contain an output that is spendable by either party, but the rules required for redemption are different for each party involved. One party called counterparty 1 or the initiator generates a secret and pays the intended trade amount into a contract transaction. The contract output can be redeemed by the second party called counterparty 2 or the participant as long as the secret is known. In order to perform an on-chain atomic swap between 2 cryptocurrencies, there are several prerequisites.

Jelly simply builds the bridge between chains and facilitates value exchange..

Download Wallet Watch Tutorial. The first multi-chain browser extension wallet. Send, receive, atomic swap, and use dapps across Bitcoin, Ethereum, Rootstock, NEAR, and Polygon ecosystems while maintaining full control of your assets. Download Learn More. Atomic swap cryptocurrency across blockchains without having to trust a custodian or counterparty.

Atomic Swaps refer to the techniques that allow tokens from different contracts, which may run on the same or different blockchains, to be securely traded, such that both parties succeed or fail together in getting the offered tokens. Trading tokens can be easily carried out through a trusted 3rd party such as a centralized exchange. Coinbase is an example of such an exchange. Because centralized exchanges must hold large amount of tokens in order to do efficient market making, they are constantly under the risk of hacking and human mis-management.


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  1. Zenas

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  2. Rybar

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