Litecoin Successfully Atomic Swap

Inforexnews

Litecoin is one type of crypto or cryptocurrency currency that can be used as a medium of exchange into the form of Bitcoin. Currently the price of Litecoin (LTC) is equivalent to Rp675.000 / LTC.

On September 19, 2017, Charlie Lee who is the creator of Litecoin and Alexlyp from Decred Project (DCR) has managed to exchange 1,337 LTC ​​to 2.4066 DCR. However, initially they have difficulties and they can solve the difficulty by using the on-chain Decred repo wallet transaction.

The next day, Charlie works with James Love Joy who is a Vertcoin (VTC) developer to do Swap Autom as well. Then James managed to enter the code Decred into VTC and this time in the second experiment they managed to exchange 1 LTC to 55 VTC without interruption. This is an on-chain transaction and does not utilize Lightning Network.

Then on September 22, 2017, Charlie teamed up with John S to perform Atomic Swaps between LTC and Bitcoin (BTC). As a result, they again managed to exchange 10 LTC for 0.1137 BTC.

However, the exchange made by Charlie with DCR, VTC, and BTC is still not utilizing SegWit. However, this technology will be very necessary because the Atomic Swap system will be fully functional and will require Network Lightning later.

What is Atomic Swap?

Atomic Swap is a technology that allows peer-to-peer exchanges of two different coins, often referred to as cross-chain transactions. This transaction can occur through the use of Hash-Time Lock Contracts (HTLC) on multisig wallet.

In order to do this Atomic Swap, you must have two multisig addresses. For example, if you have 1 multisig LTC, and your partner has a multisig BTC, then the first thing that must be done by both parties is to send each coin to the corresponding multisig address and immediately lock it with HTLC for a certain amount of time.

When the specified amount of time has expired, HTLC will specify that the coins will be returned ownership and HTLC also serves as an insurance.

The development of this technology is very helpful in this digital era, because Atomic swap is one of the core principles of Blockchain technology. Once implemented, the Atomic Swap will allow users to exchange two different coins without a third party as in the exchange exchanges.