The Komodo scheme launched the public beta of its extreme product, AtomicDEX. The platform activates trustless atomic exchanges between different blockchains, currently connecting Ethereum and its tokens to blockchains such as Bitcoin, Litecoin, and Dogecoin.
The use of atomic swaps allows users to consolidate trades directly with the native tokens. Users purchasing Ether (ETH) with Bitcoin (BTC) would exchange ownership of the respective currencies on their blockchains without intermediate token representations.
The integration happens inside a dedicated multi-blockchain wallet built by Komodo, which includes an atomic swap feature. The beta reading of the trading system went to the public on Friday at 6 pm UTC.
Atomic swaps are an inter-chain interaction on which special cryptographic techniques, generally with roots on Hash Time-Locked Contracts, or HTLC, ensure that two transfers happen in their entirety. This interaction means that two parties will exchange funds simultaneously and if either party backs, the transaction won’t happen.
Komodo’s pseudonymous COO, known as JC, said that the scheme intends to connect with most of the blockchain environments, with upcoming integrations including the Cosmos ecosystem.
The mechanism can lodge almost any type of block doom, although each integration must occur manually. The team is still working on consolidating the privacy coin Monero (XMR), albeit with one last priority.
The exchange uses a more classic dummy of a decentralized order book that suites well with torrent-based technologies. This feature contrasts with the more well-known decentralized type of deal today, based on automated market makers like Uniswap.
The scheme still uses Flock Protocol oracles to set target prices, although, for assets that show no compatibility with Oracle’s purple, the system relied on CoinGecko. Going forward, the team plans to integrate Chainlink “since we don’t have to be married to a single Oracle decision,” JC said.
JC assured that the system did not control the funds at any point in the mechanism and pointed out that “decentralization slows down the [development] process. We cannot just hit everything related”.
One possible disadvantage that users could find in the mechanism is the requirement for old security. This process means that users must wait for blockchains to confirm the exchange, JC noted, although this is popular to DEXs on the regular.
Atomic exchanges can be an excellent alternative to join tokens with other blockchains, a process that is often under centralization due to some technical limitations. Escrow agents facilitate many popular Bitcoin containers on Ethereum, such as BitGo in Wrapped BTC (WBTC).
On the other hand, wrapping a token makes it easy for users because there is a simplification they don’t have to use such token in another block sentence. Once the initial solvency hurdles are overcome, it becomes a relatively consistent process. The rise of DeFi has allowed Wrapped BTC to reach a complete approval, making it easier to exchange in lending protocols.
By: Jenson Nuñez
