Understanding Atomic Swaps

Atomic swaps revolutionize cryptocurrency exchanges by removing intermediaries and centralized control, promoting decentralization

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With atomic swaps, individuals can conduct peer-to-peer transactions across different blockchains without the need for a centralized exchange

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Centralized exchanges (CEXs) function like traditional stock exchanges, but they contradict the decentralized nature of cryptocurrencies

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Decentralized exchanges (DEXs) aim to create a noncustodial infrastructure, and atomic swaps play a vital role in achieving this goal

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Atomic swaps enhance interoperability between blockchain networks, enabling decentralized multichain cryptocurrency exchanges and promoting DeFi principles

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In contrast, using a CEX involves a lengthy process of registration, transfers, conversions, and waiting periods, with potential security risks

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DeFi and DEXs address these issues by introducing atomic swaps, streamlining the exchange process, and minimizing security vulnerabilities

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