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Bitcoin & Litecoin: Much Swifter Atomic Swaps Are Available Thanks to Lighting Lab!

Atomic swaps are now happening and that is a great development for cryptocurrency. A fair amount of developers are spending a lot of time enabling these transactions and making them available to cryptocurrency users. There are quite a few old-school techniques that most users have adopted in order to exchange their crypto. Lightning Labs has very recently announced that it has come up with a new way to facilitate these cross-chain atomic swaps. Specifically between Bitcoin and Litecoin. This is a huge development in the cryptocurrency world!

It is fascinating to follow the interest developers are showing to cryptocurrency, and the major advancements that are happening at a fast rate. Although, still far away from performing decentralised exchange solutions, Lightining Lab has claimed that it has come up with a very smart solution to this.  On the 16th of November, on the Lighting blog, the following was announced:

“Today, Lightning Labs is excited to announce that we have successfully tested the first Lightning cross-chain atomic swap between the Bitcoin and Litecoin testnets.”

Both Bitcoin and Litecoin have implemented Segwit making both networks capable of performing these swaps. This new technology from Lightining Lab is very exciting for the cryptocurrency world, and certainly a big advancement.

So how does this work? For one, the Lightining Network contains a special payment type called the Hashed Timelocked Contracts. This allows for atomic swaps to occur very differently from regular swaps. The contract means that any party can withdraw their cash at any time as long as they are able to provide their swap commitment transaction, making these payments very secure.

Lightning payments also allow the atomic swaps to either completely succeed, or completely fail. The important aspect is that both parties that are completing the transaction will become sender and receiver in order to finalize the swap.

This development is certainly exciting a lot of users, however lots of testing needs to occur in the following months in order to make sure that this project has no glitches.

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Cryptocurrency Continues To Develop At a Fast Rate. BitcoinCash Completes First Atomic Swap.

The first Bitcoin Cash atomic swap happened just yesterday according to a developer who provided proof for this on Github.com. The cryptocurrency can now be exchanged for other cryptocurrencies such as bitcoin with very little risk.

This transaction allows for hash time-locked contracts (HTLC’s). Atomic swaps are promises being made able by these contracts between two currency holders that an exchange will happen for the same value of currency at a given time. If the time limit expires, the contract would not be completed and the funds would be returned to both parties.

Although, due to the complexity of this some risk might rarely occur, in most instances there is a second level to complete the transaction that requires a private key, in which way the currency can be exchanged without anyone cheating.

To explain the transaction in its simplest form assume that Ron and Jane are swapping with each other. They have verbally agreed for Jane to swap her 10BCH with Ron’s 2BTC.  To create this transaction they use an application. Ron specifies a conditional swap where Jane would sign with a private key (hash) or they both would sign it. After that he creates a second transaction where he sends the amount to himself after 48 hours.

Jane does the same for BCH. Now all they need to do is provide the cryptographic proof of payment that can be generated at this stage. If the proof is not sent, or the agreement not signed, the funds will automatically return to the sender. The time limit is very important, however it is not very clear how the bitcoin network will be able to handle atomic swaps during times of high traffic and congestions between transactions.

Allowing decentralized exchanges between different cryptocurrencies, the feature will be helpful to many in the near future.


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Viacoin Developers Successfully Completed “Atomic” Swap With Litecoin

Atomic swaps are very popular amidst cryptocurrencies at this moment. From the successful swap between Decred and Litecoin, we have noticed similar projects focus on Ethereum and Bitcoin. Among all of this is Viacoin, an altcoin which is involving itself in cross-chain atomic swaps. A new feature has been introduced as part of its Clearinghouse tool to help make this become a reality.

VIACOIN ANNOUNCES ATOMIC SWAP SERVICE

In opposition to what the vast majority think, the purpose of Viacon is not really to be a part of an atomic swap itself. It is certainly possible we will see Viacoin-to-other-altcoin swaps sooner than later, but until further notice, that isn’t really the team’s objective. Rather, the developers are extending the Clearinghouse functionality such that it can be utilized as a “spill” in the world of cross-chain swaps.

Viacoin’s Clearinghouse feature has dependably been intended to grant peer-to-peer exchanging on the native blockchain. Viacoin is fairly different from Bitcoin and nearly all the other altcoins in the market as of this moment. This new project also allows for a lot of innovation and development in the long haul, including this new atomic swap-related effort. With the atomic swap implementation having been tested effectively, things are looking encouraging. Additionally, the developers effectively traded VIA for LTC in the process, which is a major initial step.

Under the hood, it seems this atomic swap usage works in the same manner as the one used to swap Litecoin and Decred. It’s not entirely surprising, considering every one of the three coins share some similarities which serve to make the process faster. It is also an on-chain swap implementation, rather than the faster off-chain method. Of course, it is very likely we will see off-chain atomic swaps later on, however the most recent developments will require some time to come to market first.

For now, it seems the focus is on exchanging Viacoin with “compatible” currencies, all of which also recently completed cross-chain exchanges of their own. Right now, those coins include Decred, Litecoin, and Vertcoin. This doesn’t necessarily mean we will see a Viacoin to Bitcoin swap or anything similar in the near future. However, we have learned that it is possible to exchange between blockchains with very different architectures as well, as the Zerocoin mixer is currently doing exactly that.

Additionally, because of Viacoin’s Clearinghouse implementation, it may viably turn into the “bridge” between all the blockchains of the world needed to provide atomic swaps. It would be the same as converting an altcoin to Bitcoin in order to buy Ether, for instance, yet without having to go through  an centralized platform or an intermediary. Some people may claim services such as Changelly and ShapeShift do precisely that as of now, yet they still require intermediaries to do so. Atomic swaps are very much different in this regard.

Whether Viacoin can play an essential role in this regards remains to be seen. The likelihood is there and waiting, despite the fact that the ultimate objective is still to complete atomic swaps between all different currencies directly. It might take months, or even years, , until the point when that ends up noticeably attainable. Until then, we will need some form of a temporary solution, and Clearinghouse might be the way to approach in that regard. It is a fascinating development to watch out for, that much is certain.

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Ethereum and Bitcoin Price to The Moon – Happy Friday

Ethereum and Bitcoin on Friday Oct 13, have experienced a surge in price which is being very welcomed by the crypto-community. New all-time highs for the Golden cryptocurrency, and breaking out of descending trends for the second in-follow. – Could the atomic-swap be behind it!

It is no Upwards Rocket if there is no Double Digit!

The train of increase initiated by Bitcoin has taken and included Ethereum price too as the second only to BTC has climbed 11.28 percent in the last 24-hours. It formed a near term high at $345.00 as the value was tanked by sellers at the major $350.00 level. – According to coinmarketcap.

ethereum prediction

Since its all time high in the beginning of September, Ethereum dropped to the lows of around $185.00 which was followed by an attempted recovery and a range bound between $300 and $275.00.

However, the ‘boring’ movement changed today as the pair ETH/USD broke above the range bound and is trading at $340.60 with a slight correction for the moment and preparation for the next jump.

ethereum forecast

On the other hand, Bitcoin price is increasing-on since yesterday now reaching its new formed record value of $5,840.30 against the US Dollar. The kind of movement when the crypto-gold reaches new all-time highs everyday is very well known throughout the community as it previously did in Aug-Sep going for the $5,000.

This very well could be linked close to the atomic-swap concept development for the last days for which news are traveling around speedy.

It is very clear that a change in current business model of cryptocurrency exchanges is inevitable, as actual design is flawed, are far from practical end-to-end solution and relatively easy target for hackers!?

There are several examples during short period of existing cryptocurrencies, hackers attacking  different cryptocurrency exchanges and stealing from customers hundreds of millions of dollars. (Mt.Gox, BitFinex, Bitcoinica, Bitfloor, Bitstamp…)

So, a team of cryptocurrency developers is open-sourcing technology that enables trust-less trading between a bitcoin and ethereum blockchains.

Available on GitHub, the code has already been used to execute what startup Altcoin Exchange claims is the first so-called “Atomic Swap” between the biggest cryptocurrencies by market cap, Bitcoin and Ethereum, when they traded bitcoin with ethereum, between two different blockchains.

“Decentralized exchanges are the future of cryptocurrency trading and atomic swaps will be a big part of the business model.”

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Next Step in Right Direction-Replacing Centralized Cryptocurrency Exchanges

Bitcoin-Ethereum Atomic Swap Code, now, Open Source!?

It is very clear that a change in current business model of cryptocurrency exchanges is inevitable, as actual design is flawed, are far from practical end-to-end solution and relatively easy target for hackers!?

There are several examples during short period of existing cryptocurrencies, hackers attacking  different cryptocurrency exchanges and stealing from customers hundreds of millions of dollars. ( Mt.Gox, BitFinex, Bitcoinica, Bitfloor, Bitstamp…)

Decentralized trading is the next step forward in right direction.

Cryptocurrency developers are working toward finding a solution for these issues and their primary goal is replacing centralized cryptocurrency exchanges with the ability to swap assets directly between different blockchains. So, a team of cryptocurrency developers is open-sourcing technology that enables trustless trading between a bitcoin and ethereum blockchains.

Available on GitHub, the code has already been used to execute what startup Altcoin Exchange claims is the first so-called “Atomic Swap” between the biggest cryptocurrencies by market cap, Bitcoin and Ethereum, when they traded bitcoin with ethereum, between two different blockchains.

Now there is real opportunity for a whole community of cryptocurrency developers to experiment with it and build on top of the code.

Altcoin Exchange CEO Andrew Gazdecki told CoinDesk that the team set up the demonstration this way for “testing purposes,” though the likely next step will be to trade bitcoin to ether for their respective U.S. dollar amounts or another fiat currency equivalent.

Meanwhile, the centralizes exchanges are continuing spreading worldwide and to develop their offering, including wallet and brokerage services.

Cryptocurrencies gives everyone the option to hold their money, which is great, but that doesn’t mean everyone should nor that everyone will want to. In between these two models in the near future will co-exist.

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Ethereum and Bitcoin Successfully Run Atomic Swap – Cross Chain Altcoin Exchange

Altcoin Exchange – the virtual currency trading platform, reported that the team and developers have successfully run the first atomic cross-chain swap between blockchain – Bitcoin and Ethereum. The event that took place on October 7 2017, according to the team is the initiative step towards the formation of a no-need for a trusted third-party member to perform an exchange process.

As only various and not many exchanges have undergone and successfully run a similar swap, the cross chain atomic swap topic is becoming very hot throughout the cryptocurrency community.

The swap give the possibility two network to exchange tokens without a third party trusted member, concluding with no counterparty risk. Only a few have digital currencies have gone through a similar swap like Litecoin, Decred and vertcoin.

“We have completed the very first  Ethereum <> Bitcoin atomic swap! More details coming soon,” the Altcoin Exchange team announced this week.

During the event, 0.12345 BTC were exchanged for 0.12345 ETH finding usage of an on-chain open source process. Altcoin Exchange plans to launch the project’s Github repository this Tuesday, the company’s CEO Andrew Gazdecki told news.Bitcoin.com:

“Decentralized exchanges are the future of cryptocurrency trading and atomic swaps will be a big part of the business model.”

The until now known way of trading – traditional – will be replaced by the atomic swap which represent a more secure and speedy method of getting it done – according to Gazdecki.

There is quite some work left to be done on the privacy and matching order code, the team says. Altcoin Exchange do thank for the decred development team and Litecoin’s creator Charlie Lee for help pioneering the project:

“Since June of 2011, 26 exchanges have been compromised, resulting in the loss of millions of dollars worth of coins. To prevent more of these types of hacks, decentralized exchanges are needed, and atomic swaps bring us one step closer to achieving this goal,”

“What makes the technology behind Atomic Swaps so exciting is it allows for nearly instant direct trades between cryptocurrencies. We believe this to be a critical component for creating a truly decentralized exchange that executes transactions at the same speed in which centralized exchanges are able to but without the risk of hacking and theft.”

The atomic swaps performed by Altcoin Exchange between the bitcoin and ethereum blockchains can be viewed here with the swap initiation, the participation, and redeem Aand redeem B.

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