More and more people deal with digital assets daily. But the large variety of existing cryptocurrencies creates a problem. Typically, crypto coins run on their blockchains. There are also multiple networks for crypto tokens, and a particular blockchain can only accept transactions with a specific coin or token. Exchanging coins or tokens that belong to different blockchains can be complicated. Traders, especially those interested in DeFi, often have to use multiple wallets and exchanges to get the needed token in the desired network. This involves tiresome verification procedures and withdrawal fees.
Although projects built on the Ethereum protocol are interoperable and facilitate the swapping of assets, they cannot interact with coins from other blockchains.
Cross-chain Swaps, a Solution to the Lack of Blockchains Interoperability
Cross-chain swaps, often called atomic swaps, allow exchanging coins and tokens from different blockchains in a single transaction. This type of crypto transaction occurs directly between two parties without an intermediary. Because of their trustless, peer-to-peer (P2P) nature, cross-chain swaps are truly decentralized trading techniques.
At the core of a cross-chain swap is a smart contract. The smart contract sees that the token owners agree to the trade and enforce the transaction’s success conditions. Once the smart contract is executed, the blockchain records the transaction. The swap cannot be reversed at this point. If the parties want their original tokens back, they must agree to another transaction.
The said smart contract is powered by a Hash Timelock Contract (HTLC). The HTLC generates cryptographic keys for each side. Also, it introduces a time constraint that reverses the transaction if, within a predefined time, one of the parties doesn’t fulfill their side of the swap. The said cryptographic keys are known as Hashlock Keys.
A hashlock key locks the coins or tokens with a secret key. Only the swap initiator can access this key. After verification of the initiator’s deposit, the hashlock key is revealed to the second party to unlock the said deposit. Both parties must submit their corresponding cryptographic proof of their deposits to complete the swap. In layman’s terms, the HTLC serves as a two-way virtual safe.
Cross-chain swaps facilitate multi-blockchain transactions simultaneously. However, this technology is relatively new. Although the theoretical foundations of cross-chain swaps were laid several years ago, they are not mainstream crypto transactions yet. There are many technicalities involved that most people would prefer to avoid. Also, only a handful of wallets and decentralized exchanges (DEXs) support atomic swaps, and the range of supported coins is also limited.
LetsExchange’s Alternative to Cross-Chain Swaps
LetsExchange.io is a cheap and effortless alternative to cross-chain atomic swaps if you want to swap digital assets across different blockchains. This platform allows you to easily swap hundreds of coins across Ethereum, Binance Smart Chain (recently rebranded into BNB Chain), and several other blockchains.
Strictly speaking, LetsExchange does not perform cross-chain swaps as described above. In essence, it works as a bridge between multiple significant exchanges that support different networks and coins and converts between any cryptocurrencies available on these exchanges.
All these operations are performed under the hood, working like a charm for the user. You need to select the coins that you want to swap, regardless of the blockchains they belong to, and LetsExchange will do all the necessary conversions for you.
The swap itself is fast and cheap. You can see the amount of crypto you will get immediately, with no additional fees. On LetsExchange, you can swap cryptocurrencies without any hassle and enjoy the following benefits:-
- LetsExchange allows you to swap cryptocurrencies without registering or completing KYC procedures. Opening a user account is optional, and you need to provide an email address only. You can perform cross-chain swaps without jeopardizing your privacy.
- A wide array of coins and tokens is available. LetsExchange supports more than 350 coins and tokens across multiple networks, and this number is continuously growing.
- Low fees. On LetsExchange you won’t pay ridiculously high contract interaction gas fees. When performing cross-chain swaps, you only pay regular network and processing fees. All these fees are included in the quotation you get for the estimated exchange amount. Fixed and floating rate options are available.
- Unlimited swap amounts. LetsExchange does not impose any upper limit on the amount of cryptocurrency you can swap. Lower limits apply to avoid loss-making transactions when the exchange fees account for a significant part of the total exchange amount.
Whether you are a freelancer paid with cryptocurrency, a P2E gamer, an investor, or a day-trader, you can rely on LetsExchange.io for your multi-blockchain transactions.