Blockchain Startups Qtum And Beam Partner To Offer Atomic Swap Function

Blockchain, News | July 17, 2019 By:

Smart contracts platform Qtum has teamed with Israeli blockchain startup Beam to launch a test version of an atomic swap function.

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.

Beam is a privacy-centric cryptocurrency based on the Mimblewimble Protocol. Beam transactions are private by default, and storing the entire transaction history is not necessary for blockchain validation. This ultimately reduces the blockchain size and improves scalability significantly. Beam supports many transaction types such as escrow transactions, time-locked transactions, and atomic swaps with BTC and LTC.

The Qtum/Beam atomic swap feature will reportedly enable secure, cross-chain transactions between the two currencies without having to rely on a third party. The feature utilizes Hashed Timelock Contracts (HTLC) to avoid peer-to-peer credit fraud when completing cross-chain transactions. HTLC allows each transaction to be locked until specific conditions are met, eliminating the need for risky third-party endorsement, creating a completely trustless process.

“As a public blockchain focused on technical innovation, Qtum has a reputation for promoting the development and application of blockchain technology that guarantees security and scalability,” said Qtum CIO Miguel Palencia. “We saw great success with our bitcoin atomic swap integration back in January and want to continue to expand next-level interoperability with another cryptocurrency that the Qtum community admires: Beam.”

Beam CEO Alexander Zaidelson said that the original promise of cryptocurrencies is to allow users full sovereignty of their money without the need for any intermediaries.

“Atomic swap technology allows just that,” Zaidelson said. “Thanks to our strong cooperation with Qtum, we provide our users with a way to seamlessly swap Qtum to Beam without involving any third party, removing the custodial risk.”