Blockchain Startup Qtum Completes First Bitcoin Atomic Swap

Announcements, News | January 10, 2019 By:

Smart contracts platform Qtum has announced that it has completed its first atomic swap with bitcoin on its mainnet.

Qtum is a blockchain technology and cryptocurrency designed to facilitate the interoperability of major cryptocurrencies such as bitcoin and ethereum, as well as to make smart contracts more secure and easier to handle. It uses a proof-of-stake (PoS) consensus model to reduce the computational challenges and increase scalability throughout the platform.

In its Medium blog, Qtum said the implementation of atomic swaps, a peer-to-peer exchange of cryptocurrencies from one party to another without going through a third party service, has been achieved by utilizing the Hash Time-Locked Contracts (HTLC) technology. HTLC, which is based on the code of the open-source cryptocurrency Decred, ensures the atomicity of cross-chain transactions, which has the highest security.

“Currently, one main application of atomic cross-chain swaps is to realize conversions among cryptocurrencies in multi-currency wallets,” the company said. “The HTLC technology that atomic cross-chain swaps are based on is used in many production environments, like the lightning network, because of its robust security. The feature of not having a third party dependency and atomicity is consistent with basic principles of bitcoin, so the future of atomic cross-chain swaps are favored by the market.”

According to Qtum, cross-chain exchanges of large amount of cryptocurrencies can be completed on the blockchain using atomic cross-chain swaps, without the need of centralized exchanges which will charge a large amount of fees.

“An implementation based on bitcoin payment script enables swap among bitcoin-like cryptocurrencies such as BTC, BCH, and LTC,” the company said. “There is also a solidity-based implementation, which realizes swap among ethereum-like cryptocurrencies and ERC20 tokens. The project realizes swaps among bitcoin-like, ethereum-like, and EOS cryptocurrencies, and made a product for users to execute swaps.”