Here is an article that breaks down the Bitcoin atomic swap in simple terms:
Ethereum: Can anyone Eli5 (explain like me 5) for Bitcoin atomic swaps?
Imagine that you have some money, say $ 100 and you want to buy a toy from your friend. You don’t know what the toy costs yet, so you make an agreement with your friend: «Hey, I’ll give you my money ($ 100), but instead I’ll get 10 toys.»
problem
Now, let’s say there are two children in this game: player 1 and player 2. You want to buy the player 1 toy, but they are not willing to pay the price label immediately.
To make a business, you need something called «atomic swaps». Atomic swaps are like magical offers that can be made without actually sending money back and forth between you and your friend.
What is an atomic swap?
An atomic swap is a type of transaction in bitcoin (and other cryptocurrencies) in which two parties agree to change different amounts of cryptocurrency for each other. It is called «atomic» because everything happens from a date, like magic!
Here’s how it works:
Create a new transaction on Blockchain who says: «Give it 100 bitcoin, but only if you give me other coins.»
Your friend creates a similar transaction that says: «Take 10 coins and give me.»
Both broadcast (send) transactions to the network.
The network checks both transactions (check the errors).
Once everything is verified, the transaction is merged in blockchain.
Magic happens
Now, here’s where things get interesting. Because atomic swaps involve two different transactions, the network must figure out how to resolve these conflicts. This is called «rebalancing».
Imagine that you have $ 100 in a transaction and another $ 100 in another transaction. How do you recover your coins?
To remedy this, you can create a new transaction that says: «Take 10 coins from me (in the first transaction) and give it to my friend» (in the second transaction). This transaction is called «atomic swap».
Why atomic swaps are important
Atomic swaps have many advantages:
They make it easy for people to buy and sell cryptocurrencies without having to expect each other.
Reduce the amount of money to be transferred between people.
They allow fast and safe transactions, due to the use of complex cryptography.
Conclusion
In summary, atomic swaps are a type of transaction in bitcoin (and other cryptocurrencies) in which two parties agree to change different amounts of cryptocurrency for each other. It’s like a magical business that happens from a blockchain! Using atomic swaps, people can buy and sell cryptocurrencies without having to expect each other, which makes it easier and faster.
I hope this explanation helped you to understand a little better Bitcoin atomic changes!
Ethereum: Can someone ELI5 to me for Bitcoin Atomic Swaps?
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Here is an article that breaks down the Bitcoin atomic swap in simple terms:
Ethereum: Can anyone Eli5 (explain like me 5) for Bitcoin atomic swaps?
Imagine that you have some money, say $ 100 and you want to buy a toy from your friend. You don’t know what the toy costs yet, so you make an agreement with your friend: «Hey, I’ll give you my money ($ 100), but instead I’ll get 10 toys.»
problem
Now, let’s say there are two children in this game: player 1 and player 2. You want to buy the player 1 toy, but they are not willing to pay the price label immediately.
To make a business, you need something called «atomic swaps». Atomic swaps are like magical offers that can be made without actually sending money back and forth between you and your friend.
What is an atomic swap?
An atomic swap is a type of transaction in bitcoin (and other cryptocurrencies) in which two parties agree to change different amounts of cryptocurrency for each other. It is called «atomic» because everything happens from a date, like magic!
Here’s how it works:
Magic happens
Now, here’s where things get interesting. Because atomic swaps involve two different transactions, the network must figure out how to resolve these conflicts. This is called «rebalancing».
Imagine that you have $ 100 in a transaction and another $ 100 in another transaction. How do you recover your coins?
To remedy this, you can create a new transaction that says: «Take 10 coins from me (in the first transaction) and give it to my friend» (in the second transaction). This transaction is called «atomic swap».
Why atomic swaps are important
Atomic swaps have many advantages:
Conclusion
In summary, atomic swaps are a type of transaction in bitcoin (and other cryptocurrencies) in which two parties agree to change different amounts of cryptocurrency for each other. It’s like a magical business that happens from a blockchain! Using atomic swaps, people can buy and sell cryptocurrencies without having to expect each other, which makes it easier and faster.
I hope this explanation helped you to understand a little better Bitcoin atomic changes!
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