Qtum Undertakes First Atomic Swap With Bitcoin
Qtum is a platform powered by the blockchain technology, which is a blend of Bitcoin and Ethereum features. Qtum came into existence by merging an abstraction layer on top of a Bitcoin fork code. This new addition to the fork code of Bitcoin makes Qtum a hybrid model which allows sidechain incorporation with blockchain virtual machines. Qtum is a blend of the best of two words. It is a production of the addition of Bitcoin’s value-storing features and Ethereum’s smart-contract feature.
It will provide the smartest way of making payments and doing business. It is an AI-powered smart contract backed platform that can change the way we do business. The company is based in Singapore, and its core area of business is developing mobile dApp market.
This unique platform has taken another step ahead by undertaking its first-ever atomic swap with Bitcoin. This would be done with the help of mainnet. This is a milestone in the journey of the atomic swap. Atomic swap is a feature which enables users to perform on-chain exchanges, even between two different/separate blockchain platforms. These transactions would not demand any intervention of a third party.
As per the blog post shared by Qtum, the main factor making this cross-chain transaction possible is Hash Time-Locked Contracts, which are also called as HTLC. HTL contracts lock the transacted funds on the platform for a particular time so that both blockchains involved in the transaction can confirm the transfer on their own. In the case, either of the party does not approve of the transaction, the cycle goes into the reverse motion, and everything is returned to the original parties.
The all and all process of the atomic swap is as follows:
Person A begins a transaction on Qtum (having a time-locked contract) and transfers funds to Person B. Person B evaluate the transaction. If person B approves of the transaction, B starts a similar transaction on Bitcoin to BTC to person A. Now, A person evaluates the transaction. Once approved, A can redeem BTC from it. On the other side, person B redeems QTUM.
However, if the time locked gets expired, and person B does not redeem the token, person A will receive the refund.
The previous year, Qtum made enough efforts to get the acceptance in the market plus tried to leap forward in building its blockchain for better interoperability and adoption by the users. Atomic swap is the step to that.
The Importance of Atomic Swap:
Let us see how the atomic swap is making the Qtum go ahead. Considering the previous example of person A and B, suppose person A wants to buy a digital collectible from person B,( face to face or in-person trading is not possible). If person A wants to send funds to the person B, person B could easily cheat here; he can accept the funds but not send the collectible in return (even, the opposite can come true). Here an atomic swap comes to help.
It allows funds to get exchanged between parties by merely relying on mathematics and technologies.
