What Are Atomic Swaps? Explained in Plain English

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Atomic Swaps allow complete strangers to safely exchange between different cryptocurrencies without the need for a 3rd party (i.e. an exchange). The technology is still in its early days but once matured will allow free convertibility between cryptocurrencies.
That’s Atomic Swaps in a nutshell. If you want a more detailed explanation about Atomic Swaps watch the complete video, here’s what I’ll cover:
0:47 - Switching costs
1:57 - Atomic swaps explained
3:04 - Atomic swaps example
4:30 - Atomic swaps technical jagron
5:20 - Atomic swaps limitations
5:47 - Why are atomic swaps important?
6:46 - Conclusion
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Still have questions? Leave us a comment in the comment section below

[@99Bitcoins]

CAUTION!! Many scammers are using the comment section to promote their scams and sometimes even use the name “99Bitcoins” in their profile. Never send money to someone you don’t know and don’t accept offers to trade or exchange cryptocurrency from strangers. Stay safe 🙏🏻🙏🏻🙏🏻

[@1018Stacey]

Wow, thanks Nate, you made it easier for me to undestand.

[@Discoworx]

Just found you. Very clear and professional and love the outtakes. Thanks

[@cryptolete6033]

This is an awesome channel. Helped me to understand crypto when I first got involved. Helping me now with atomic swaps. I think atomic swaps, if explained in plain english, can be a HUGE factor in helping to get crypto mainstream because they are such an extreme improvement over the systems we have in place right now

[@VirtualBacon]

Thank you for this amazing channel!

[@cool7846]

The best explanation of Atomic Swaps. Thank you

[@JeanPaulLuijten]

Well explained Nate!

[@doodiedooddoodicus]

This made it very easy to understand. I really like the baseball trading analogy

[@ilak9806]

Thank you for easy explanation!

[@javierenjutomonje8145]

Awesome video! thanks Nate

[@apollomanz3928]

APOLLO CURRENCY ATOMIC SWAPS Coming in May to their DEX. APOLLO is literally the most cutting edge crypto on the Market. They just made crypto history with their release of Sharding which even ETH tried and couldnt do. They are also the fastest and most private coin. So excited about this Project

[@porky1118]

I hate, when people tell me to subscribe, especially when it's before the video. I almost always subscribe after watching the first video of a person, when I liked it, and I almost never activate the bell, except for a hand full of my favorite channels. Don't watch and dislike.

[@andreip2748]

5:16 not exactly though. if user #1 wants to continue with the swap and user #2 does not, user #2 cannot walk away.

[@banzobeans]

Isn‘t that what the time lock is for?

[@heaven-is-real]

Nate God bless you and Kim thanks for the info+++ on atomic swaps-

[@freddyperezjr]

Thank you very much.

[@user-bs5nv1qs5o]

2:51 why cant fiat currencies be exchanged in atomic swaps? A digital yuan cant be swapped for a digital ruble even if both their central banks issues digital fiat?

[@albertf.9198]

Great video, gives me confidence for the future of efficient private transactions of crypto.

[@HeroNinjaClan]

Can you please do a video on Quantum-Resistant Cryptocurrencies like IOTA and how they differ from those that are supposedly more vulnerable?

[@99Bitcoins]

I doubt IOTA has any real resistance to quantum computing, given how lax they were with rolling their own crypto (see: old.reddit.com/r/Iota/comments/82kt9r/why_is_rolling_your_own_crypto_so_bad/) It's probably just a buzzword at this point for a crypto to claim quantum resistance, much like ASIC resistance.

[@williamlandreth4002]

I was pretty sure the original intent was for the "exchange" to be a one-party exchange... makes sense. The "costs" involved would make perfect sense since this swapping ability is really important for the legacy crypto systems to be usable and survive into the future. Under the circumstances as you present them I would expect to be able to see a list of "asks" and "bids" so that people could state exactly how many BTC they would be willing to exchange for how many LTC....

[@99Bitcoins]

I can see a market emerging but then again, such markets already exist all over the world in the form of standard crypto exchanges. It's likely price will be set there without much divergence seen on atomic swap markets.

[@beamtalk657]

I use 100% decentralized and easy-to-use Atomic Swaps through Beam Privacy's atomic swaps board. I've been in crypto since 2016 looking for atomic swaps and that one's my favorite

[@DITRH]

That was excellent.

[@nickolayvictorovichbabenko9468]

thank you!

[@lisamlisak]

thank you....

[@TheBipin819]

Always Great 👍

[@LubomirTzekov]

Great video! Would love to see Replace-By-Fee video explained in same format. 10x.

[@juanj2116]

Hi Nate. Thx for your clarity, it helps a lot. Just a question, you do the exchange, what about the costs for processing? The gas? How/from where is that collected? Thx

[@99Bitcoins]

Those fees would be collected from your balance as part of the transaction and handled automatically. They should be very low so not really an issue.

[@juanj2116]

@@99Bitcoins Great, thx

[@Dakkaroni]

You are underrated and professional as f.uck.

[@FernandoFalci]

What prevents one side to use the preimage and cash out both coins at the same time (or really close)

[@vike1929]

Thank you for this video. Can I as a business become the third party atomic sway provider? If not where can I find a third party atomic swap provider?

[@violet_droid_xz]

Can it possible to Any Altcoins of any algorithms to BTC...

[@LearnEnglishwithTrev]

Excellent

[@wm9253]

Thank you for your clip. It is very clear. Do you mind if I translate this video clip and distribute in Thai language?

[@99Bitcoins]

Hi, you can share the video using the share button in KZbin, but we do not allow translating the content as your own video.

[@YeloPartyHat]

Is there any currently active atomic swap providers/coins/exchanges?

[@jackpueppke9241]

Do you still check on you best bitcoin faucet list?

[@teennetworkce]

Apreciated

[@obiejohn623]

What is the best way to exchange btc to privacy coins without kyc?

[@ScottHardenbergh]

Great explanation Nate. CLAP! CLAP!

[@simontrangmar4537]

Thanks for a helpful vid.. great baseball analogy .... one question if i may... how do buyers and sellers find each other? Isn't there still a need for a market maker of sorts? Regards Simon... Australia

[@giantozor]

AtomicDEX from $KMD use a perr to peer orderbook, market maker have indeed to put up some order on different pairs to create liquidity

[@cryptointegrations9854]

What are some main atomic swap sites?

[@sujeetchavhan4315]

Question: What if the first person in atomic swap is corrupt? What if he doesn’t shares the key with second person?

[@arnebeerten9562]

This is an amazing explanation! I have some questions though: I guess, to use your example, BTC and LTC chains have to be interoperable of some sort? How is this achieved? Through sidechains? Also, how can this be done free of charge without any fees involved? Is this all because of the Lightning Network? To be fair, I still need to research that topic.

[@99Bitcoins]

Atomic swaps rely on the same technology which facilitates Lightning Networks, specificially Hash Time-Locked Contracts. HTLCs are essentially smart contracts which release funds contingent upon a condition being met within a certain timeframe. In the case of atomic swaps, the condition is the receipt of the crypto. So person A who wants LTC sends their BTC to a smart contract. This smart contract pays out the BTC to person B's address provided person B's LTC is received by the contract by X time and date. Person B's situation is a mirror. As far as I know, for atomic swaps to work, both coins must be Lightning-compatible.

[@arnebeerten9562]

@@99Bitcoins thank you for replying!

[@AjayKumar-wv2eg]

Good

[@a_maxed_out_handle_of_30_chars]

alternate title, ELI5: Atomic Swaps

[@bajolunapod]

What is the different between Atomic Swaps and such other things like pancake swap or UniSwap? Is it the Smart Contract inclusion? Can you really easily be scammed by using non-atomic swaps? Thanks for this explanation

[@transcendmoney]

The video is great. Atomic Swap is going to change totally the crypto game

[@tome3427]

Are there tax implications here on the swap?

[@Majhoolification]

What does the atomic swap benefit from?

[@Owlbe]

aion does it ! isi'nt it? they building right? plz review

[@williamlandreth4002]

I notice they are at aion.network but other than that I am still just wondering about it.....

[@99Bitcoins]

Any cryptocurrency which supports Lightning Segwit can achieve atomic swap functionality

[@dieweltistkrass4275]

Check out Apollo currency (APL) with decentralized wallet, atomic swaps and sharding comming soon!

[@nasaos8571]

So today in 2021 what’s the update ?

[@thepreacher2558]

aren't the spreads on atomic swaps and other p2p trades really high?

[@mohamedkosarmashaaallahjaz6052]

I'm happy

[@chaikobkitsuksakul4885]

What s going on with the conventional DEX e.g. UNISWAP, if ATOMIC SWAP becomes alive?

[@user-jc1no9tx7c]

how to withdraw my funds in my atomic wallet & send it to my banks in canada

[@99Bitcoins]

Hey there, if you want to sell your Bitcoins and get CAD, you'll need to: 1. Find a Bitcoin/cryptocurrency exchange 2. Deposit your Bitcoins on that exchange 3. Sell your Bitcoins for CAD on the exchange 4. Withdraw the CAD to your bank account Here's a list of the top Bitcoin exchange today: 99bitcoins.com/best-bitcoin-exchanges-comparison-review/ Hope this helps

[@lequinnmorris909]

Do I get taxed when I swap coins? I could just keep swapping them easily making money apart from trading fee! But I wouldn’t cash out for a good 6 years so continually swapping coins and getting more money does that work? No one has really ever answered this question

[@trappedcat3615]

Whenever you say "Bitcoins" (plural) I feel so left out.

[@priyeshsrivastava1301]

XD, even numbers less than 1 have plural like I have 0.00001 bitcoins

[@trappedcat3615]

@@priyeshsrivastava1301 that true. I have a lot of Satoshis then.

[@holyascension]

How is the exchange rate determined?

[@99Bitcoins]

In the implementations I've seen, an order book is used which resembles a regular exchange. You browse existing orders or place one of your own. In other words, the exchange rate is determined by market participants.

[@Discoworx]

@@99Bitcoins are atomic swaps a xrp killer (not needing a bridging currency)? Thanks

[@giantozor]

@@Discoworx indeed atomic swaps does not need proxy tokens to function

[@jasonposey3397]

is this tied to cosmos

[@BobBostwick1]

Ugh, eff off with the lightning crap. Other than that, great video.

[@reyesperales8190]

Is there a way to profit from crypto swaps?

[@click411]

This is for Nate rooster haircut. Will China digital currency be interchangeable with Bitcoin rrsp or any other

[@click411]

@@jessicawiley9592 I don't think we know each other maybe I reply to a post to yours or something but I can't bring your picture up large enough to really recognize

[@Xgrosz]

ILP :)

[@ferguselstone9655]

Who needs atomic swap when you have LTX and the layer 0 standard

[@thatoneguyRyan1]

Osmosis🥰

[@monmendoza8368]

I came here because of Atomic symbol seen on the simpsons family

[@EweJinLeeAmazingLee]

Isn't this just mechanism to facilitate P2P transaction? Doesn't this makes crypto exchanges obsolete?

[@giantozor]

if the atomic swap powered DEX you are using have enough liquidity it makes CEX obsolete indeed because it's cheaper (less fees) faster (no deposit delays) safer (you always own you keys) and more private (there is no KYC since you are using a DEX) But like I said it needs liquidity (i.e people marketmaking) In my opinion $KMD with AtomicDEX is leading this tech

[@mikijovic1351]

Hello everyone. Monero >< bitcoin atomic swap started today 😎 this is going to rock the world

[@thanoytrade5293]

yeah #metamorph.pro DEX, ATOMIC SWAP launching this month