Atomic cross-chain trading allows users to exchange cryptocurrencies from different blockchains without relying on intermediaries. This process ensures that the trade can only occur if both parties fulfill their obligations, minimizing the risk of loss.To facilitate this, atomic swaps use smart contracts, which automatically execute the trade when specific conditions are met. For example, if Alice wants to trade Bitcoin for Bob’s Ethereum, a smart contract locks the Bitcoin on Alice’s side and the Ethereum on Bob’s side. When Alice’s Bitcoin is confirmed, the Ethereum is released to her, and vice versa.This method enhances security and privacy while eliminating the need for exchanges, which can be vulnerable to hacks. Atomic cross-chain trading promotes greater liquidity and decentralization in the market, allowing users to maintain control over their assets throughout the transaction process. Overall, it represents a significant step toward achieving greater interoperability between various blockchain networks.
Ripple, Absa Partner to Launch Digital Asset Custody in South Africa
Ripple has entered a strategic partnership with Absa Bank to provide digital asset custody services to customers in South Africa,