My fellow blockchain enthusiasts, an atomic feature has dropped into the world of cryptocurrency… quite literally called the ‘atomic swap’.
This new development is expected to be a real game change (a game changer, for the game changer).
Up until this point, there is actually no easy way to convert Bitcoin into Alt coins and vice versa without relying on exchanges.
For example, if you own Ethereum and you want to swap it for Ripple — you’d usually have to swap out your Ethereum to Bitcoin (or fiat) and then Bitcoin(or fiat) to Ripple (through an exchange).
Fees and time constraints make this rather cumbersome to say that least.
Thankfully, the geniuses of the 21st century wouldn’t have it that way…
The concept of atomic swap proposes a ‘lightning’ solution to simplify cross trading.
How it works
Ester with the Ethereum sends her ether to the ethereum blockchain, and Ralph sends his ripple to the ripple chain. When an atomic swap is initiated, a secret code links the transaction together via the lightning network which can then only be claimed with the secret code.
Some technical development needs to be done to the code of each coin to make it compatible with the lightning network. Litecoin may be the first one to do it.
Doing so will set the foundations and pave way for other coins to do the same. This is a real breakthrough for the world of cryptocurrency.
What does this really mean for you?
If you’re an observer of the space, you’ll start to see a lot more movement between other cryptocurrencies other than bitcoin — as they won’t have to rely on them so much.
If you’re an investor, you’ll be able to make faster and cheaper trades without having to drive around the bend.
If you’re a Litecoin investor, there is a good chance for rapid growth (a pioneer’s advantage).
Either way, there’s going to be a lot of movement in this space. If you’re still not convinced, you’re about to be…
[edit as at 2nd Sep] — Litecoin’s price broke $90 USD; a 2000% rise since the start of the year (~$4)…
Need we say more?
p.s. The above was written on 24th August.