Atomic Future for Minexcoin
All you want to know about Minexcoin Atomic Swap and the future of decentralized exchanges.
In our updated roadmap we’ve reported about successful Atomic Swap tests between MNX and BTC blockchains. Also, we promised to fill you in some more details about team’s plans and vision of MinexExchange development. In this publication we’ll try to respond on all of this.
What is Atomic Swap?
If you’re keeping track of this theme, you can safely scroll to the next article’s part. If you are not, let’s finally deal with this hype-swaps everybody has been talking about since 2017. It’s not difficult to do. Atomic Swaps, or atomic cross-chain trading, is the exchange of one cryptocurrency to another without the need to trust a third-party. In simple terms, this technology enables to connect different blockchains and completely modifies the way in which users transact with each other. For example, if you own 0.5 BTC and want to buy 250 MNX, with Atomic Swap technology you don’t have to use an exchange to trade your assets. Instead, you just have to find the other person with Minexcoin and change your holdings without fees, withdrawals and other restrictions.
To make trade operations safe and trustless Atomic Swaps utilises what is known as hash time-locked contracts. It’s a class of payments when recipient has only a certain amount of time to accept the payment. Otherwise, the money is returned to the sender. The person who will be making the payment sets up a specific hash, which represents the amount of money that will be paid. To receive the payment, the recipient will have to generate a cryptographic proof of payment or forfeit the ability to claim the payment, returning it to the payer.
Where is Minexcoin?
Probably, you’ve heard a lot of news dedicated to Atomic Swaps transactions during this and last year. There were successful transactions between currencies like Bitcoin, Litecoin, Zcash, Decred and others. However, most of the atomic swap protocols so far have been done on so-called Test-nets, and these processes were rather complicated.
Minexcoin Lead Blockchain-Developer Roman Hulenko says:
“So far, all Atomiс Swap based transactions were conducted in the incubator ideal conditions and didn’t go beyond the test-nets. Thus, one of the major problems with cross-chain technology implementation remains a lack of full security guarantees. Every blockchain that could support Atomic Swaps, more or less, is at risk. Today’s main global developer’s goal is to reduce risks rather than simply launch cross-chain trading in the blockchain. I can tell that we’d already created a solution that would significantly narrow the risk window. It will be implemented in exchanger and will allow creating a fixed safe zone for users.”
As we informed earlier, MNX had successfully passed Atomic tests in our test-net conducted last month. During February, our team is looking forward presenting the first cross-chain exchange between MNX and BTC to the community and publishing the protocol on the MNX GitHub.
“As soon as we introduce you fully working protocol, — says Roman, — everyone will have a chance to test Atomic Swaps with own assets. The first pair will be MNX and BTC. After the public tests, we’ll add others popular cryptocurrencies such as Litecoin or Zcash. Unlike existing console solutions that are uncomfortable for users not familiar with programming, Minexcoin Atomic Swaps will be presented on the self GUI. It means that everyone will quickly understand exchange process which has been already quite simple:
1)Two users agree to exchange some coins.
2) Each of them opens our GUI and fill several cells — the user’s address, the number of coins to send and the number of coins to receive.
3) When all cells filled, the user pushes “start” button, and MNX protocol makes all the rest.
4) If for some reason, there was no exchange, coins will be returned to users.
(non)Decentralized future
In the first instance, our product will work precisely as a fee-free exchanger. During this time, the team will analyze the customer’s demand, use-cases and behavior, and will modify the product. Ideally, we are committed to develop a decentralized exchange, but there are also some pitfalls. Roman tells about them:
“Let’s name the first version of the product as Light-Exchanger. Why is it “Light”? It’s true that existing protocol enables Atomic Swaps, facilitating exchange processes and removing an exchange fees. In other hands, when we’re talking about full-blown Decentralised Exchange we’re facing two main problems.
First, the trading and exchange algorithms need more complicated Atomic Protocol, which final development will be possible after the implementation and finalisation of the light-exchanger. It’s one of our mid-term goals.
The second problem is Atomic-Hype. In pursuit of audience and glory, some companies are guilty of switching the definition . What is commonly termed a “decentralized exchange” due to Atomic Swaps, in fact, is a “centralized trustless solution” without involving third parties. And this is precisely the kind of product we’re developing now. Of course, we’re seeking to full decentralisation, but is too early to talk about it. So I’d like to invite the community to the First Trustless MinexExchange as soon as possible.”
To summarise, the crypto-world is yet to solve many significant challenges related to cross-chain transactions. Our team stands ready to continue contributing, within our capacity, to these processes and thanks to the community for the support. It won’t take long for you to make your first swaps with MNX.
