Bitcoin is the financial world, Lightning is revolutionizing the payments and Atomic Swaps the trust-less Transfer between block chains. What can you imagine under an Atomic Swap? And as far as the technology is already developed?
After the activation of the SegWit Updates that fixed the Transaction Malleability, could be the Lightning Network (short: LN) is implemented. With the Lightning Network, transactions can also happen outside the Blockchain. On the one hand, this massively increased the scale of the respective Blockchain, on the other hand, these so-called Off-Chain transactions allow for even more features.
What is an Atomic Swap?
Atomic Swaps are an example of these additional functions, which allows the Lightning Network. Just an Atomic Swap of the direct exchange of crypto-currencies on two different block chains is spoken. With clever cryptography, an exchange can be made directly, without the need of an Intermediary that holds the stocks of the two parties, or ensure that everything.
Cryptographically, the Atomic Swaps are based on the so-called Hash timelock Contracts (HTLC). Using cryptography can be a safety net construct, in which both parties involved in the exchange are able to be sure that no fraud can take place. Briefly, The Protocol itself assumes the function of the trust. The Protocol will not be bribed. Just like with Bitcoin all are in front of the log.
The state of Atomic Swaps
The first Atomic Swap between two block chains was carried out in November 2017, namely between Bitcoin and Litecoin. The activation SegWits also took place in the year 2017 – first Litecoin, then later for Bitcoin. The first exchange was time-consuming, because you had to operate a Full Node for Bitcoin but also for Litecoin on his computer. In addition, there is no graphical user interface. All commands must be run from a Command Line Interface (in short CLI). Generally speaking, Atomic Swaps are just more of a Proof of Concept than an implementation for the mass.
Kilian Rausch, explained the second Atomic Swap between Litecoin and Bitcoin, and described his experience in a Medium post. The repeated execution of an Atomic Swaps suggests that the use of the LN is also in the developers application. In the LN a lot of new and revolutionary concepts can be developed, the change similar to how Bitcoin itself, our paradigms. 23. June Hackathon will take place around LN in Berlin.
In short: The Atomic Swaps are meant to be in work and not for mass adaptation. However, the concept is a lot of hope and can, once it Matures, the current landscape of centralized Exchanges.