This article was first published on Stories by Qtum on Medium
Connecting smart contracts to the world of privacy through cross-chain atomic swaps.
As a public blockchain focusing on technical innovation, Qtum has a reputation for promoting the development and application of blockchain and the importance of privacy. Although the Qtum blockchain itself has anonymity on some level, privacy and protection can always be strengthened. From its collaborative research with universities to the world’s first online privacy hackathon co-sponsored with Beam, Qtum remains as committed as ever to progress in privacy.
Recently, the emergence of the Mimblewimble protocol has given a new direction to the privacy field. As a representative of the Mimblewimble protocol, Beam simplifies transaction size while ensuring privacy protection with high scalability.
Atomic swap has also been well received in the industry, enabling cross-chain transactions between two digital currencies. The successful cooperation between Beam and Qtum further symbolizes Qtum’s dedication to privacy and cross-chain technology.
Atomic Swap allows atomic cross-chain transactions of cryptocurrencies on two separate blockchains without relying on third-party trust endorsements. The term “atomic” means that the transaction can either be a success or a failure, without involving the third state.
For example: Let’s assume that Alice and Bob want to exchange a certain amount of cryptocurrencies A and B. In the absence of a centralized exchange, both parties will first need to agree on the exchange rate and then, with the help of atomic swap, send A to Bob and then B to Alice.
However, transactions on the blockchain are irreversible. Trading in different currencies without a central endorsement must involve operational priorities. If Alice sends A first, then Alice is at a disadvantage, because she cannot ensure Bob will send a certain amount of B to her as agreed.
In order to guarantee the success of decentralized peer-to-peer transactions, we need a mechanism to ensure ...
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Stories by Qtum on Medium