What is an Atomic Swap?
The atomic swap is a smart contract process that allows two parties to exchange different Cryptocurrencies without the risk of default of one of the parties.
The exchange between the parties involved can be done without depending on a third-party intermediary.
To explain this in a simple way: neither party can use the other party’s money before the end of the transaction.
Thus, the transaction will take place and both parties will receive their respective coins, and if this does not happen then the transaction will not be successful. This is guaranteed by atomic conversion smart contracts.
Atomic Swaps are also often referred to as cross-chain atomic swaps. This means that two different Cryptocurrencies present on different chains can be exchanged securely without third-party intermediaries.
Different companies implementing this technology may add fees for the provision of this service, as these exchanges can only be done on a command-line basis. Even if companies charge you a small fee, it will be a more secure method than using centralized platforms.