The Swap Challenge: Turn Your Testnet Ether Into Real Bitcoin With Atomic Cross-Chain Swaps
UPDATE: The Swap Challenge has closed — However, you can try out mainnet Bitcoin, Dai, and Ether Atomic Swaps at Liquality!
TLDR; swap your Rinkeby testnet ether for real bitcoin ($10) without middlemen, fees, or counterparty risk.
Liquality is a vision for a more open and equitable future, where anyone can transact freely from middlemen and discrimination. If Bitcoin removes intermediaries from your money, then Liquality ensures that they stay out of your swaps.
To that end, its core contributors have been building two tools that empower participants to swap cryptocurrencies peer-to-peer. The first is a free (as in freedom) software library that lays the foundation for a blockchain-agnostic network of cryptocurrency, known as the Chain Abstraction Layer (CAL). The second is an adapter for wallets that allows users to conduct atomic cross-chain swaps of cryptocurrencies between blockchains without counterparty risk, middlemen, or fees. Using a “bring your own wallet” (BYOW) approach, users retain control over their keys and get to use their preferred wallets.
Last week, core contributors launched an atomic cross-chain swap wallet adapter on testnet, with the goals of:
- Empowering participants to realize their fundamental human right to freely transact
- Validating the utility of peer-to-peer swaps and receiving in-depth feedback
- Engaging in deep discussions with the broader community and challenging our assumptions
The Swap Challenge — ETH & BTC
To further these goals, contributors to Liquality are kicking off the Swap Challenge, where 100 participants will each be able to trustlessly swap their testnet ETH for $10 worth of BTC (minus mining fees). This is a novel method of incentivizing product usage and feedback, as rewards are programmatically claimed through the successful completion of the swaps themselves. No middlemen, no fees, no trust, and no third-party validation.
Given that one of the main goals is to get in-depth product feedback, contributors have split the $10 reward into two swaps:
- By completing the first swap, a participant atomically receives half of the reward, followed by a feedback questionnaire.
- Upon receipt of quality feedback from the participant, a second swap will be initiated for the participant to claim the remainder of the reward.
The Swap Challenge Step-by-Step Guide — Swap Your Testnet Ether for Real Bitcoin
What you’ll need:
- A MetaMask wallet with Rinkeby testnet ether — ping contributors on Telegram for some testnet ether if you don’t have any. You will send us testnet ether from this wallet.
- A Ledger wallet — make sure you have Ledger Live installed. You will receive mainnet bitcoins into this wallet.
- A Chrome browser on a laptop/desktop
Contributors are available to answer any questions in the Crisp chatbox of the interface, 9:00 AM UTC — 2:00 AM UTC.
Go to the swap challenge and initiate an atomic cross-chain swap with the following parameters:
- 0.1 testnet ether (make sure your MetaMask wallet is on the Rinkeby network) for 0.00125 bitcoins (the application will automatically use one of your legacy Bitcoin addresses; you can verify this to be the case if the interface shows an address with the prefix “1”. SegWit support coming soon)
- The rate on the interface should state 1 ETH = 0.0125 BTC
- Connect your MetaMask (Rinkeby) and Ledger (mainnet legacy bitcoin) wallets
- Reach out to contributors using the Crisp chatbox on the lower right corner of the interface for the counterparty addresses
Initiate the atomic cross-chain swap by clicking “Next”. This step will prompt MetaMask to transfer your testnet ETH into an escrow, requiring your signature and transaction via MetaMask.
Then, copy the counterparty swap link, open up the chatbox on the lower right of your screen, and paste the link into the chatbox.
Once you have sent the link over in the chat, contributors will identify that your swap has been initiated and will confirm the terms in the chatbox, locking their bitcoins into the swap.
Click the “Link Sent” button to continue with the swap.
Once both escrow contracts of the atomic cross-chain swap have been confirmed on their respective networks, you will be able to claim the reward of this first swap (the first $5 worth of bitcoin minus mining fees). You can do so by clicking the “Claim Your Funds” button and following along with the prompts displayed on your Ledger device.
To verify that you’ve received the bitcoins, check your Legacy Bitcoin account on Ledger Live. If you don’t see a Legacy account on your Ledger Live dashboard, complete the following: Ledger Live > New Account > Select Bitcoin > Check Legacy accounts.
After the first swap has been completed, Liquality contributors will reply in the same chatbox with a link to the feedback form. The form should take about 5 minutes to complete.
Once the form has been submitted, contributors will evaluate the quality of feedback provided and initiate a second swap, replying in the chatbox with a new swap link that contains the remainder of the reward.
Open the swap link, connect your same wallets, and confirm the terms of the swap. This time around, you will have to wait for the contributors’ bitcoin transaction to be confirmed before you can confirm the terms.
Liquality contributors will then claim your testnet ether, and once confirmed on the Rinkeby Ethereum testnet blockchain, you will be able to claim the rest of your bitcoin reward and complete the swap. Again, you will need to click the “Claim your funds” button, follow the prompts on your Ledger device, and view the Legacy account on Ledger Live.
Ready, Set, Swap
Go to the swap challenge, be the first of 100 to start an atomic cross-chain swap, claim your bitcoin, and help us improve the product in preparation of the mainnet launch. Let’s build the best way to swap truly peer-to-peer — let’s build the disintermediated future, together.
Your freedom to transact is a human right.
Originally published at blog.liquality.io on December 14, 2018.