Mainnet Release

The cross-chain wallet Swap.Online has been launched on the mainnet; Atomic swaps are now available for Bitcoin, Ethereum, EOS and ERC20 tokens.

Swap.Online: Wallet

The development team of the decentralized multi-chain Swap.Online wallet is delighted to announce the launch of the main service’s functions. To date, Swap.Online can be used for storing Bitcoins, Ether, EOS, USDT and the new stablecoin Gemini Dollar (GUSD) from the Winklewoss brothers, and for atomic exchanges between the currencies. In addition, the wallet allows users to store and exchange a number of promising ERC-20 tokens, including the coins of the Aeron project (ERC-20: ARN), Crowdholding (ERC-20: YUP), Leverj (ERC-20: LEV) and many others.

Currently, the Swap.Online wallet does not charge any commission for storage, I / O or cryptocurrency exchange services. The project is also offering the possibility of adding funds to the wallet in exchange for the organization of mutual PR-activities, BTC, ETH, or ERC-20 standard tokens on any interesting project.

Swap.Online: The Technology

Technologically, the Swap.Online wallet offers its users a number of advanced solutions. First, it is truly decentralized, as the exchange does not rely on any central servers, and all transactions pass through the IPFS. Secondly, neither the Swap.Online team nor any third parties have access to user keys. The keys are uploaded directly to the browser and can only be used by the exchange participant. Thirdly, working with Swap.Online does not involve any additional downloads, add-ons, plug-ins, application settings, etc. The user’s browser turns into a cryptocurrency wallet in a couple of seconds after opening the Swap.Online page.

Swap.Online: Roadmap

The algorithm of the decentralized cross-chain cryptocurrency exchange that Swap.Online operates on was formulated and published by the project executive director Alexander Noxon on November 22, 2017, as a solution for receiving Bitcoin and tokens into decentralized applications. Having agreed on private investments (Swap.Online did not and will never conduct an ICO), Noxon started working on the project in early 2018. In May 2018, Swap.Online announced the release of a test version of the wallet, in June the project conducted a complete and independent technical audit of the code. In August 2018, the project team received a positive legal opinion and a license to conduct financial transactions and the exchange of cryptocurrencies for fiat currencies from a specialized agency of one of the EU states. The atomic exchanges involving the EOS network and the USD Tether stablecoin conducted by the developers of Swap.Online in September 2018 have no significant precedents in world practice and can be considered a unique development.

At the moment, a web version of the service is available, which completely written in JavaScript. A desktop and mobile application are currently under development along with an add-on for Google Chrome. The project also plans to launch the Swap.Button, a widget for sites that allows users to accept tokens as an investment. The project team is currently engaged in ongoing negotiations with startups interested in listing their tokens and is adding the most highly demanded projects on a weekly basis to its platform.

Atomic Swaps with Gemini !

atomic swap gemini dollar

Stablecoins, the cryptocurrencies with the price pegged to this of some traditional currency (like USDT), were initially designed as the solution which merges the merits of crypto and real world asset. Most commonly, people use stablecoins as the liquidity and risk protection solution. Particularly it is useful in the situations and jurisdictions where the fiat-to-crypto-transactions are not an option. We have already discussed pros and cons of stablecoins in our ‘Atomic Swap with USDT’ review. Have a look – the first part is for the newbies, the second one is for developers. It describes our exchange solution in 200 lines of code.

Gemini Dollar as a State-of-the-Art Stablecoin

We usually criticize stablecoins for the lack of transparency regarding the process of issuance and the whole mechanism of transactions with the fiat the stablecoin is backed by. That’s why in September, 2018 Winklewoss twins via their Gemini crypto marketplace have released a new stablecoin – Gemini Dollar. Unlike other cryptos of this type, they developed and issued it in collaboration with the U.S. financial authorities. Therefore, this fact allows it to be ‘the world’s first regulated stablecoin’. The New York Department of Financial Services (NYDFS) is main regulator of Gemini emission while the U.S. Federal Deposit Insurance Corporation (FDIC) is responsible for the issues with Gemini Dollar security. Moreover, BPM Accounting and Consulting will publish monthly independent audit report of the whole system  on the project web-site. Technically, this token belongs to the ERC-20 standard.

Gemini Dollar on Swap.Online

Swap.Online, multi-chain decentralized wallet using Atomic Swaps is the first decentralized platform to add Gemini Dollar to balances. Our developers have finalized test swaps with BTC, ERC-20, USDT and EOS. So, it can be a gate for the dollar liquidity on Swap.Online, With no doubt, it will make the cross-chain trade with our wallet more profitable.

Your competitors don’t even know about this option. Thus, try the Atomic Swaps with Gemini Dollar and be among the first to trade this stablecoin in decentralized, fast and safe manner on Swap.Online.

What is Atomic Swap?

Our readers often ask us what exactly is Atomic Swap, and how does it guarantee a secured transaction.

Let us look into the technology in more detail.

In Crypto, the term “Atomic” was adopted from databases, where there is a number of database operations that either occur altogether or do not occur at all (or are brought back to their initial condition, if one of the operations is interrupted, or if something else goes wrong).

These operations are named Atomic Transactions.

Atomicity is one of the four characteristics of “ACID” transactions, with the remaining three being: Consistency; Isolation; Durability. All of these characteristics are necessary, in order to perform a transaction within the database.

The word Swap speaks for itself. It is the exchange of one cryptocurrency for another. By bringing these two meanings together, we get the following definition of an Atomic Swap – a series of operations with two blockchain systems, that lead to a successful exchange of two cryptocurrencies. If one of the conditions of the transaction is not met, the swap is not confirmed, excluding a situation where only one of the two participants receives their cryptocurrency.

The principals of the atomic swap are used in a variety of decentralized exchange technologies. For example, in all sorts for onchain DEXax ( idex, waves, etherdelta, bitshares) and Cross-Chain exchanges (komodo, hodlhodl, swap.online). In the near future we expect to see them be used in PCN (Payment Channel Networks), for instance – Lightning Network.

All of these technologies used differently and have various levels of decentralization. Nevertheless, they all solve the problem of creating a balance between decentralization and speed. The usage of atomic swaps is becoming more popular among Cross Chain exchanges based on HTLC technologies (Hash Time Lock Contract).

As you already know, Hash – is a one-way encryption, with a determined result. This means that for any given secret you will always get the same encrypted line that is difficult to reconstruct (if being precise – very-very hard to reconstruct).

HTLC is a smart contract for an agreed amount of cryptocurrency. The amount can only be sent to a predetermined wallet(address – account) after providing the secret to the hash junction within the given time frame. When creating a contract, you only know the hash function of the secret, keeping the secret itself unavailable to the public. By creating symmetric HTCL on two different block-chains, you get a simplified Atomic Swap mechanism.

Alice creates a smart contract on the Bitcoin blockchain, stating Bob’s address as the beneficiary. Bob creates the same exact contract, but only on the Ethereum blockchain, mentioning Alice’s address as the beneficiary. Both contracts use the same Hash function, but only one of the two parties knows the Hash functions secret.

atomic swap how it works

There is no difference who knows the secret, as long as the party that does know it creates a contract with a more extended time frame.

Here is how the HTLC works. Both of the contracts are symmetric, and the first party to receive their crypto-currency is the one that holds the secret. For example, Alice is the holder of the secret. She provides the Secret to Bob’s smart contract on the Ethereum BlockChain. Once the smart contract receives the secret, it calculates its hash function, and if it matches the hash function in the smart contract, Alice will receive here Ethereum, that will be sent to her wallet.

As we know, all the operations in the blockchain are seen by the public, so when Alice reveals the secret – Bob will immediately receive it. Given that Alice’s Bitcoin Blockchain contract holds the exact same hash function when Bob provides it with the secret he automatically received his Bitcoins to his wallet.

If for some reason Alice does not reveal the secret, Bob will get his Ethereum back after his smart contract’s time frame runs out. In addition, if Alice provides an incorrect secret, the calculation will not match the hash function of Bob’s smart contract, not allowing the transfer of the funds.

atomic swap cryptocurrency

It’s that simple.

You can find more details on HTLC on the internet with different examples of how there are used.

Every Atomic Swap goes through two stages.

The first stage – “Order Matching”. Reaching an agreement between two participants of the Swap. To be precise, this important stage has to be done before the atomic swap. How this stage is accomplished defines projects from one another. There are different “handshake” protocols that can be used, for example, some use centralized services or sidechains, others use decentralized order-books.

Swap.online in its initial protocol version uses ipfs pubsub – a fully decentralized protocol for sending messages. Each order that a Market Maker places is distributed through the message channels that the Market Takers are subscribed to. As if announcing through a loudspeaker they are willing to exchange, for example, 10 of their Bitcoins for 100 of your Ethereums.

The Market Takers will see all the new orders after subscribing to the message channels. In order to view the Market Makers order constantly – he or she should always send out messages about its relevance, meaning the Market Maker should always be online in order to confirm an exchange.

Nevertheless, this does not bring any operational inconvenience. Because in any case for an HTLC protocol exchange you must sign the transactions in real time, and a Market Taker can show an interest to your order at any time.

Once a Market Taker decides to accept one of the orders, he/she sends a message of confirmation, and both parties create an HTLC contract on their blockchains and finalize the exchange as shown in the above-mentioned protocol.

Please see other helpful links below:

Why do I need SWAP tokens?

Atomic Swap for the newbies: Swap.Online Guide

Что такое Атомарные свопы?

Многие из наших читателей спрашивают, а что, собственно, такое – атомарный своп. И как он мне гарантирует безопасность сделки обмена?

Начнем разбирать технологию по полочкам.

Термин атомарный пришел в крипту из баз данных. Там известны такие серии операций, которые либо происходили все вместе, либо не происходили вообще (ну или откатывались назад в первоначальное состояние, если исполнение одной из операций прерывалось, ну или еще что-то шло не так).

Такие серии получили названия атомарных транзакций.

Атомарность была одной из четырех свойств “ACID”, аббревиатуры означающей Atomiсity (Атомарность), Consistency (Последовательность), Isolation (Изолированность), Durability (Долговечность). Эти свойства, собственно, являются необходимыми для любой транзакции в базе данных.

Слово Swap говорит само за себя. Это обмен одной криптовалюты на другую. Соединяя два понятия вместе, мы получаем определение атомарного свопа как серии операций над двумя блокчейнами, которые либо ведут к успешному обмену криптовалютами, либо они откатываются назад, и обмен не происходит. Ситуация, когда одна сторона получила криптовалюту а другая нет, невозможна.

Принципы атомарного свопа используются в различных децентрализованных технологиях обмена. Его используют во всевозможных onchain DEXах, (idex, waves, etherdelta, bitshares), cross chain обменниках (komodo, hodlhodl, swap.online), ближайшее будущее сулит нам обмен состояниями в сетях платежных каналов (PCN i.e. payment channel networks) например – lightning network.

Все эти технологии имеют разные имплементации, с разной глубиной децентрализации. Но всегда они решают проблему баланса между децентрализацией и скоростью. Наиболее актуальная на сегодня имплементация атомарных свопов – это crosschain обмен на основе HTLC технологии. HTLC это Hash Time Lock Contract (по-русски – контракт закрытый хэш-временным механизмом).

Что такое хэш – многие уже знают, это одностороннее шифрование, при этом результат детерминирован. Это значит, что из любого секрета Вы получите всегда одну и ту же зашифрованную строку, при этом произвести обратное вычисление невозможно, ну или если быть точным – очень-очень сложно.

Дак вот, HTLC – это смарт контракт, в котором закрыта криптовалюта, и получить ее можно только на заранее определенный адрес, предъявив секрет соответствующий хэшу в течение определенного времени. Во время создания контракта известен лишь хэш секрета. И, соответственно, сам серкет не доступен публично.

Создавая два симметричных HTLC на разных блокчейнах, Вы получаете достаточно простой механизм атомарного свопа.

Один смарт контракт создает Алиса на сети биткойн, бенефициаром которого становится биткойн адрес Боба. А боб создает точно такой же смарт контракт на сети Эфира, где бенефициар – адрес Алисы. Одна из сторон является хранителем секрета, хэш от которого известен обоим, с ним и создается смарт контракт.

Kто из сторон хранит секрет – абсолютно не важно. Тут важно то, что тот кто знает секрет – создает контракт с чуть большим временным замком. 

И так магия HTLC – оба контракта симметричны, криптовалюту первой получает та сторона, которая предъявила секрет. Например Алиса. Она предъявляет секрет в смарт контракт Боба на сети эфир. Смарт Контракт вычисляет хэш секрета – и если все совпадает – перечисляет на адрес Алисы заранее зашитый в Смарт Контракте. 

Так как все операции в блокчейне публичны, секрет сразу становится известен Бобу. Ну и как мы помним в Смарт Контракте Алисы биткоины закрыты тем-же хэшем, поэтому Боб предъявляя обнаруженный секрет тут-же получает эти биткоины. Главное сделать это вовремя пока действует временной замок. 

Если вдруг по какой то причине Алиса не раскрывает свой секрет, Боб по окончанию действия временного замка может спокойно забрать свой эфир обратно. Алиса-же не может получить эфир боба из Смарт Контракта предъявив неправильный секрет – он же не совпадет с хэшем, ну и Смарт Контракт эфир не отдаст. 

Вот так-вот просто. 

Если Вы не все поняли, почитайте подробней об HTLC контрактах, более детальных сценариев полно в интернете. 

Любой атомарный своп состоит из двух этапов. 

Первый этап – это “order matching”. Процесс соглашения об обмене между сторонами. Если быть точным, это необходимый шаг, который должен произойти ДО начала атомарного свопа. Реализация этого шага – одно из главных отличий разных проектов. Протоколы для процедуры “handshake” перед началом свопа совершенно разные – кто-то использует централизованные сервисы, кто-то sidechain, кто-то децентрализованные order-books. 

Swap.online в первой версии своего протокола использует ipfs pubsub – полностью децентрализованный протокол передачи сообщений. Каждый ордер созданный маркет мейкером транслируется в каналы сообщений, на которые подписаны маркет тейкеры. Он как бы говорит в рупор что я готов поменять свои 10 биткоинов на Ваших 100 эфиров. 

Маркет тейкер видит ордера после подписки на каналы сообщений, по мере их поступлений. Для того чтобы ордер маркет мейкера был виден – он должен постоянно публиковать сообщение о его актуальности в канал, таким образом маркетмейкеру необходимо постоянно быть online чтобы заключать сделки. 

Но это не влечет операционного неудобства, ибо в любом случае процесс обмена с помощью протокола HTLC требует подписи транзакций в реальном времени. А принятие ордера маркет тейкером может произойти в любой момент. 

После того как маркет тейкер выбрал и принял один из рекламируемых ордеров подписав сообщение о принятии ордера, обе стороны начинают создавать HTLC контракты на своих блокчейнах, и завершают транзакцию по вышеописанномму протоколу. 

Ссылки на другие полезные статьи:

Для чего нужны токены SWAP
Атомарные Свопы для новичков

Swap.Online By weekly News Digest #2 (Aug 6 – Aug 27)

Product Development

First of all, read about our game changing  solution on the Atomic Swaps exchange between USDT – the most controversial cryptocurrency with the highest capitalization in the world and different blockchains. If you have basic knowledge of C++ , you can see how we solved the problem of the USDT exchange in 200 lines of code. If you have no such experience, it’s time to know what Tether is, that everybody is talking about, why its exchange is important, and how the world leading development team misled 97% of the USDT holders.

Do not hesitate to read about the results of our developers progress in August. They brilliantly improved the stability and usability of our product, solved some issues with the IPFS, tested and implemented the possibility of sending the links on the given order.

Do not miss the news about the Atomic Swaps with EOS in/at the end of the article

Research and Analysis

Swap.Online conducted a comprehensive research of our competitors. Due to the multi-functional nature of our crypto wallet, for the research we considered not only decentralized exchanges but even some centralized services. Also, we wrote shortly on some projects you definitely should look at in 2019.

By the way, the decentralized peer-to-peer instant cross-chain crypto tokens exchange is the initial idea of Swap.Online. Our CEO Alexander Noxon predicted that in 2019 the amount of trading in decentralized exchanges will surpass that of the centralized ones. We decided to look back on the turbulent history of digital money exchange technologies starting from the non-blockchain era of the mid-2000s

to the Atomic Swap DEXs of nowadays.

Finally, we invite you to the ‘final level’ of decentralization – cross-chain interaction. In our research, we explain why this technology is still missing, where we can find its roots, and which teams are the closest to commercial implementation of this tech. The Polkadot project as the pioneers of many-to-many cross-chain interactions is analyzed with particular attention.

See you in September with the Swap.Online Byweekly News Digest #3,

Swap.Online Team

Swap.Online Essential Links

Website: https://testnet.swap.online
GitHub: https://github.com/swaponline
Email: [email protected]
Telegram: https://t.me/swaponline
Facebook: https://www.facebook.com/Swaponline
Twitter: https://twitter.com/SwapOnlineTeam
Wiki: https://wiki.swap.online/
Bitcointalk: https://bitcointalk.org/index.php?topic=4636633

SWAP Token Review

Basic observations on the SWAP token economy

Disclaimer: This document is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a token price, including and not limited on how those terms are used in any applicable law or regulation. SWAP token economics and its features might be subject to change.

atomic swap wallet token

Abstract

As we have already announced (see p. 10) in the project light paper, the SWAP token will be the core element of Swap.Online project monetization. SWAP is ERC-20 token listed on Swap.Online and can be added to plenty of hot crypto wallets. The total SWAP supply is 21M with neither ICO nor mining procedures planned. We avoided the traditional hype-based model of initial coin offering. The value of the SWAP token will depend on its features and functionality.

Functionality

For now, we define five main functions of SWAP token.

  1. Premium Trading Options. Swap.Online will provide zero-fee for cross-chain exchanges of BTC, ERC-20, USDT, EOS coins. By the way, the default trades will be available with a ‘starter-pack’ interface and a reduced toolkit. SWAP holder will be able to see the reputation and rating of the counterparties, number of trades, market analytics, and other useful information and insights. SWAP tokens are a must-have for daily-traders and market makers.
  2. Building up Reputation. Atomic swap is all about exchanges built on trust and protecting your funds no matter what the intentions of your counterparty are. But we also understand the importance of the time for a swap and the momentum of opportunity. The time could be lost by a cancelled or intentionally slowed down swap by the counterparty. That’s why we’ve introduced a reputation management system which will be done in a centralized way. If you want your reputation to be scored (e.g: as a market maker), we will require a stake in SWAP tokens.
  3. Safety. Working as a part of a proof-of-stake consensus, SWAP tokens will be used as an additional safety guarantee for its holders. For example, in case of an attack on the Node or an unexpected IPFS-connection failure, a new connection will first be provided to the users with SWAP tokens. By the way, it this particular case, the users can connect to any other server.
  4. Advertising. Swap.Online website, being an attractive platform for crypto-traders, will generate high and quality traffic, thus bringing value to the advertising space on our resource. SWAP tokens will be used as a mean of payment for this advertising space.
  5. Token Integration. Swap.Online is a licensed multi-chain hot wallet that can promptly integrate your Сoin into the balance showing it on our homepage. SWAP tokens will be needed to list new ERC-20 and other types of tokens. Maybe, in the near future, we will also provide the possibility of *TOKEN*<->SWAP trades on Swap.Online platform from the first day of their listing.

Trading

Our SWAP tokens will be freely traded via the centralized and decentralized exchanges which support ERC-20 tokens. Note: Swap Online OÜ itself DOES NOT sell SWAP tokens at the moment. By the way, in accordance with our roadmap, a significant stake of SWAP tokens will be spent on the project’s development.

We officially avoid giving any predictions about the price of SWAP. But as a reference, our contributors estimate the price of the SWAP token in approximately 1 USD. Thus, Swap.Online capitalisation based on token supply&price is approximately 21M USD and can be compared to CryptoBridge, Lykke Exchange, SingularX, and Legolas Exchange.

You can also compare Swap.Online with its main competitors (see the table below) considering their capitalization, features, and weaknesses.