Komodo Project officially launched a public beta version of its newest product, AtomicDEX. The platform aims to enable trustworthy atomic swaps between different blockchains. AtomicDEX currently connects Ethereum and its tokens with blockchains such as Bitcoin, Litecoin, and Dogecoin.
The use of atomic swaps enables users to trade native tokens directly. For example, if someone buys Ether with Bitcoin, the ownership of the coins would simply change.
AtomicDEX is integrated into a special multi-blockchain wallet from Komodo, which contains a function of atomic swaps.
What Are Atomic Swaps?
Atomic swaps are a type of cross-chain interaction, i.e. a transfer of coins or tokens between two different blockchains. Special cryptographic techniques ensure that two transactions either take place completely or not at all.
In practice, this means that recipients of a transaction must confirm payment by generating cryptographic evidence within a certain time frame. Otherwise, a transaction won’t take place. These cryptographic techniques are usually based on so-called hashed timelock contracts or HTLCs.
What Is AtomicDEX: How Does It work?
AtomicDEX is the third generation of a decentralized trading exchange technology from Komodo which replaces the previous BarterDEX platform. In addition, AtomicDEX offers a 2 in 1 solution, because the exchange functions both as a multi-coin wallet and as a completely decentralized trading platform.
AtomicDEX Beta currently allows users to store 25 different coins and tokens and trade them within the wallet. In theory, AtomicDEX can support over 95 percent of all crypto assets. This includes Bitcoin, all UTXO-based coins, Ethers, and ERC-20 tokens as well as all cryptocurrencies that support HTLC payments. With each update, more tradable assets are listed.
According to its own information, Komodo states that the exchange is using a new order matching system that increases security, stability, and simplicity of trading in digital assets.
Komodo started the beta version of its new product AtomicDEX on February 26th. The aim is to revolutionize crypto trading on decentralized exchanges to a certain extent. With the help of atomic swaps, trading between two parties should be faster, cheaper, and, above all, safer.
Atomic swaps can be a valid alternative for transactions between different blockchains. Because usually this process is centralized due to technical limitations. In addition, trading platforms and wallet providers can use Komodo’s AtomicAPI as an open platform to benefit from the advantages of atomic swap technology.
The rate of Komodo wasn’t influenced by the news of the beta start.