Happy new year!

Dear community,

On the last day of the outgoing 2018 me, Alex Noxon, for the first time address to you as a CEO of Swap Online project.
A year ago I got an idea of building a simple and decentralized service to connect all blockchains without any third party. I have studied all excited trends in this field, like PolkaDot, Plasma and of course the very first Atomic Swaps. The choice of building Swap Online was very obvious since there blockchain world really needed such kind of tool – easy to use, scalable and truly decentralized.

Within one year, we have gathered a decentralized team all across the world. Excited with an idea of building Swap Online, all team members did their best, and here what we have

  • We have launched Swap Online on mainnet only in six months after starting the development. According to Ernst & Young, such goal appeared to be impossible for 84% of all blockchain projects.
  • We were the first who performed an Atomic Swap with the most common stable coin – USDT. And now any project can sell their tokens with this stable coin in a decentralized manner
  • Facing the heavy competition from CEX and classic DEX we have collaborated with 45 solid projects, listed their tokens in Swap Online and gave their communities a handy hot wallet and a way to exchange tokens with BTC and USDT. Unlike our competitors, we haven’t charged any price for this
    We are constantly doing R&D and implementing new blockchains in our cross-chain protocol. Litecoin, Bitcoin Cash and the most fair fork of EOS – Telos were integrated.
  • Created a big network of partners and followers, all across the world.

What goals do we set for 2019? We believe, in 2019 Swap Button will become an industry standard for all types of token distribution – both ICO and secondary token sale. A lot of DApps requires a way to sell tokens to their users without third party – and we will give it to them with our Swap Button.

We have achieved a license for performing exchange of cryptocurrency to fiat money (security tokens). And 2019 will be the year when we will complete this task.

Finally – keep doing hard work on integrating as many blockchains, as possible. What will be the next one? We will reveal it soon enough!

And we want to thank our community for support. Our followers are our main wealth. Guests of our blogs, owners of wallets on Swap Online, operators of our forks and all-all-all who are interested in advanced cross-chain technology. We will do all we can to become better for you.

Happy New Year,

Sincerelly yours,

Alexandr Noxon

5 Tips How to Choose Best Bitcoin Wallet

Considering the fact that BTC is on its flat, a bulk of investors suppose it’s the best time to buy it. Thus, Swap.Online presents a kind of manual for newbies on how to choose best Bitcoin wallet.

Point 1. Safety first.

All of you guys may hear about the devastating Bitcoin frauds and hacks resulting in more than 1 million BTC stolen up to nowadays. That’s why you should double-check all the issues with your wallet safety. Firstly, you should verify the protocol security of the domain you would like to use as the btc wallet. The address of domain name should start with ‘https’ and not with ‘http’. Moreover, it should be accompanied by the icon of green lock. It means that your connection with the site is secure and encrypted. All the information required to store Bitcoin here is only transferred between you and wallet.

That’s how the encrypted connection looks like.

secure bitcoin wallet

Finally, if you are familiar with whois-services, check the history of domain name and its holder. Best cryptocurrency wallet is always protected by the U.S.-located CloudFlare service which helps to keep the information about domain registrar in secret and to save the web-site from DDOS-attacks.

Point 2. Decentralized or centralized?

Should you look through the vast majority of cryptocurrencies wallets, you will obviously find the word ‘decentralized’ many times. ‘Decentralized’ in that case means that the service doesn’t use single server for operations, central matcher to connect buyer and seller etc. Since Bitcoin itself was designed as the decentralized currency, all Bitcoin transactions should be decentralized in a perfect world. But, in fact, wallets and exchanges use centralized systems to burst the speed of operations. By the way, every single point of centralization means that the wallet is vulnerable for frauds. Taking this fact into account, centralized BTC wallets use words like ‘hybrid decentralized’, ‘semi-decentralized’, ‘semi-centralized’ etc. Beware of being mislead: centralization means speed and vulnerability, decentralization means safety and technology.

Point 3. Bitcoin wallet…only?

Times when bitcoin wallet was used only for storage, sending and receival of Bitcoin are now just a distant memory. Now best wallets for every currency should be cross-chain. It means that there should be multiple blockchains in one wallet – Bitcoin, Ethereum (it results in the availability of ERC-20 and ERC-223 tokens based on the Ethereum blockchain), EOS, XRP, Monero etc. The wallet which is pegged to the single blockchain will not be useful to trade Bitcoin against altcoins. Investition in single coin is very risky because of unpredictable market volatility. Proper wallet should merge different blockchains being all-in-one solution for crypto investment.

Point 4. Fee, fee, fee.

Trading on the crypto market shouldn’t be costly. By the way, majority of wallets and exchanges allowing to conduct bitcoin transactions are charging their clients with transactional fees. It is the amount of crypto you pay for the service per every transaction. Every BTC wallet (or any other kind of storage solution) has its own policy. Mostly, the taker of liquidity is charged with transactional fee. It depends: 0,3 % from taker, 0,2% from taker + 0,1 % from maker, fixed fee for small transactions (0,01 ETH or 0,0005 BTC) etc. Swap.Online organized the research of market and found that 0,3 % from the sum of trade is maximum reasonable total commision. If you are charged with something more by your Bitcoin wallet,  it is expensive.

bitcoin transaction comission

Transaction fee scheme of one popular Bitcoin exchange. Swap.Online says: it’s expensive

Point 5. How to withdraw?

Last but not least of our tips is to check the withdrawal options of your Bitcoin wallet. Imagine the day you earned your first USD million and decided to buy this pesky yellow Lamborghini. How would you get your money back? First of all, check the rules of withdrawal. Some wallets use VISA, Mastercard or bank accounts connected to SEPA or even SWIFT. But then you will need to send some documents to withdraw money: copy of your ID, proof of income, identification photo (ID, your face and screenshot of exchange in high resolution) etc. It is called ‘know-your-customer/anti-money-laundering’ policy or KYC/AML. Are you ready to go through this checks usually resulting in weeks of withdrawal delay? Moreover, withdrawal fee can be really high – up to 10 % of money you would like to withdraw. In your case it is 100K USD. So, be aware of difficult and costly withdrawal.

So, Swap.Online strongly recommends to use Bitcoin wallets which are:

  • safe
  • decentralized
  • cross-chain
  • low-fee or zero-fee
  • KYC/AML – neutral

In Swap.Online we stick for the whole range of these rules. Store Bitcoin with safety and profit!

Even More Decentralized: Litecoin x Swap.Online

We will also have decentralized exchanges

using atomic swaps. The possibilities are endless.

Charlie Lee, the creator of Litecoin.
September 20, 2018

A team of Swap.Online – the decentralized cross-chain wallet working on atomic swap technology is preparing to list Litecoin on their platform, placing it among the world’s most popular cryptocurrencies like Bitcoin, Ethereum, USDT, EOS and dozens of other popular ERC-20 Tokens. Before the release of atomic swaps with Litecoin, Swap.Online will tell about the unique features of this currency and why it was decided to add it to our wallet.

How to improve Bitcoin in free time from work?
Charlie Lee who was born in Côte d’Ivoire came to Google in the early 2000s. Among the most famous projects of the company on which he had the opportunity to work as a developer is Chrome OS, an operating system that uses the Google Chrome browser as the basis of its interface. In 2011, Charlie became interested in Bitcoin and began to explore the mechanisms of the network. “At first, it was just interesting for me to learn something new about the Bitcoin network. Then it became a kind of game: I wanted to create one of the best Altcoins” – says Charlie Lee about his creation. While still working at Google, he began to develop a more advanced version of Bitcoin. The Litecoin network was launched on October 13, 2011 after Mr Lee managed to mine 150 coins within this fork. A year later Litecoin capitalization exceeded one billion dollars, in some periods showing growth of 100% per day. Few people remember, but till December 2017 it was up to 7 times more profitable to invest in Litecoin than in Bitcoin. In 2014, Forbes highlighted Litecoin among all other early Altcoins, admiring its investment potential and adaptability.

Light Bitcoin by SatoshiLite: faster and more affordable
The second after Namecoin fork of the Bitcoin network is significantly different from the “parent” version of the Bitcoin Core algorithms. Bitcoin uses the SHA-256 hashing principle, whereas script is inherent in Litecoin. One block in Litecoin network is mined for about 2.5 minutes versus 10 minutes for Bitcoin. This leads to the fact that the maximum amount of emission of a Litecoin is 84 million coins, which is 4 times more than that of Bitcoin. These features of Litecoin cryptography lead to the fact that it is more often mined not on ASIC circuits, but on video cards and home computer processors. However, Charlie Lee himself urged never to compare Bitcoin with Litecoin (so as his brother Bobby who founded the first Chinese Bitcoin exchange). “Bitcoin is gold, and Litecoin is silver.” Litecoin became the first mass cryptocurrency, which in May 2017 almost simultaneously applied the SegWit network scaling technology and conducted a transaction through the Lightning Network; Swap.Online already wrote in detail about both solutions. This original experience (when Litecoin has pioneered the integration of both network scaling solutions) has a breakthrough value not only for Litecoin, but also for all Bitcoin Core forks.

Atomic swaps with Litecoin and currency opportunities
Atomic swaps — cross-chain decentralized peer-to-peer interactions — were first conducted with Litecoin network. On September 19, 2017, the Komodo Platform team made the first atomic swap between the Litecoin and the Decred blockchain, and just three days later Charlie Lee personally announced the swap between Bitcoin and Litecoin. Although more than a year has passed since then, developers are still arguing about whose atomic swap with Litecoin is “truly atomic”. The creator of Litecoin himself has already decided on whether Litecoin needs atomic swaps. The humble Chinese developer turned out to be an eccentric network speaker. Quiet and modest in life Mr Lee may be harsh in statements when it comes to cryptocurrencies. His tweets influenced the market numerous of times – just remember the sale of all of his Litecoins, about which he later regretted. And now, at the end of September 2018, he delivered a number of statements the most outstanding of which concerned atomic swaps: “We also will be on the decentralized exchanges which use atomic swaps. The possibilities here are endless”.

And now is the time to tell about the most important – Why Swap.Online and Litecoin are looking the same way.

The technology is above all. The first atomic swaps were conducted with Litecoin. Swap.Online team was the first to conduct atomic swaps with EOS and USDT. The Lightning Network solutions will also be applied in swap.online in the future. By the way, in June 2018 our leading developers participated in the Lightning Labs hackathon in Berlin with Swap.Online project.

Long-term development, not momentary benefits. Charlie Lee refused to apply pre-mining, revealing the mechanism of his fork, having only 150 coins. Swap.Online did not perform an ICO, relying only on the functionality of the SWAP token.

The future is in atomic swaps and cross-chains. As Mr Lee said: “Lightcoin interacts with Bitcoin through Lightning Network channels using atomic swaps.” Swap.Online is one of the few decentralized services that simultaneously supports bitcoin and other blockchains.

We are absolutely sure: the adding of Litecoin will be one of the highlights of this fall for Swap.Online. According to Ed Sdwas, responsible for the integration of Litecoin at Swap.Online, with the proper ability to understand the ready-made code, the development of our project allowed us to quickly and reliably integrate such an important currency. Right now, atomic Litecoin swaps are already available in test mode: check-out the exchange on our testnet.

Here’s who it looks like:

We have already released a Litecoin wallet, available at the direct link: https://swap.online/litecoin-wallet. The list of coins with which atomic exchanges are available can be seen after you click the Exchange button. When building a cross-project for different networks, we cooperate only with the most promising and advanced projects and solutions.

How to perform an Atomic Swap

Since Atomic Swap technology is a brand new in a blockchain world, some people have difficulties using it. In this short instruction we give our users a simple explanation of how it works on Swap.Online cross-chain wallet. It will give you an opportunity to exchange your crypto fast, simple and decentralized. From now on, you don’t have a need to send your money to a third party like centralized exchange – everything happens p2p – from one wallet to another. Safe and sound.

There are two possible ways to perform a swap
Create your own order and wait till somebody except it
Execute existing order

You can also try out our platform to find out how everything works in testnet, by creating your order from one browser and executing it from another. Since each and every account is connected to a browser and its local storage, it will mean you are performing swap between different accounts.

Important notice. For this example, I have used two browsers – Safari and Google Chrome. In Google Chrome I have created order, in Safari – executed this order. If you want to do so, you have to create order in one browser, execute it in another. Both browsers should be online.

Create your own order

From the main page go to “Exchange” tab or select the coin you would like to exchange directlyatomic swap wallet

If you have chosen “Exchange” tab, then select direction of exchange (BTC-ETH the most popular, for example) and click “Show orders”atomic swap exchange

In case you have chosen certain coin, select the direction of exchange for this coin.how to perform an atomic swap

Now click the tab “Create offer”swap online wallet create order

On the next screen, choose the amount you want to sell. The amount you will get will be calculated automatically. You can also choose your own custom exchange rate. And click “Next”swap btc to eth

Check that everything correct in your order. Click “Add”bitcoin to ethereum atomic swap

Done and done. Here is your order. You can also check all your orders in “Show my orders” tabexchange orders

Execute existing order

From the main page go to “Exchange” tab or select the coin you would like to exchange directly.swap online exchange

If you have chosen “Exchange” tab, then select the direction of exchange (BTC-ETH the most popular, for example) and click “Show orders”choose exchange direction

In case you have chosen a certain coin, select the direction of exchange for this coin.trading pairs

Now you are in the order book. Select the order for execution. Let’s choose order we have just created.
Important notice. For this example, I have used two browsers – Safari and Google Chrome. In Google Chrome I have created order, in Safari – executed this order. If you want to do so, you have to create order in one browser, execute it in another. Both browsers should be online.buy sell orders

Now all you have to do is wait, while an order is being executed. Once everything is done, you’ll see such screenatomic swap complete guide

And such screen you will see in first browser — from which you have created your order.atomic swap exchange guide

Do you want some SWAP tokens? Perform an Atomic Swap with this instruction, and post it in your social media channels!

Swap.Online Essential Links

GitHub: https://github.com/swaponline
Email: [email protected]
Twitter: https://twitter.com/SwapOnlineTeam

Swap.Online запускает атомарные свапы с лайткоином


“…мы будем и на децентрализованных обменниках, использующих атомарные свапы. Возможности здесь безграничны”.

Чарли Ли, создатель лайткоина.

20 сентября 2018 года.

Команда децентрализованного кросс-чейнового кошелька Swap.Online, работающего по технологии атомарных свопов, готовится добавить к перечню своих валют Лайткоин (Ł , LTC). Топовая криптовалюта мира, таким образом, встанет в один ряд с биткоином, эфириумом, USDT, EOS и десятками популярных ERC-20-токенов. В преддверии релиза атомарных свопов с лайткоином, Swap.Online поведает об особенностях этой валюты и расскажет, почему было решено добавить её в наш кошелёк.

Как улучшить биткоин в свободное от работы время?

Уроженец Кот-д’Ивуара Чарли Ли пришёл в Google в начале 2000-х годов. Самый известный из проектов компании, над которым ему довелось работать в качестве разработчика – Chrome OS, операционная система, использующая браузер Google Chrome в качестве основы своего интерфейса. В 2011 году Чарли заинтересовался биткоином и стал исследовать механизмы работы сети. “Поначалу мне было просто интересно узнавать что-то новое о сети биткоина. Потом это стало своего рода игрой: мне захотелось создать лучший из альткоинов” – говорит о своём детище Чарли Ли. Не уходя из Google, он стал разрабатывать более совершенную версию биткоина. Сеть лайткоина  была запущена 13 октября 2011 года после того, как господину Ли удалось намайнить в рамках этого форка 150 монет. Уже год спустя капитализация лайткоина превысила один миллиард долларов, в отдельные периоды показывая рост до 100 % в день. Мало кто помнит, но вплоть до декабря 2017 года инвестировать в лайткоин было до 7 раз выгоднее, чем в биткоин. В 2014 году Forbes выделил лайткоин среди всех ранних альткоинов, восхищаясь его инвестиционным потенциалом и технологичностью.

Лёгкий биткоин от SatoshiLite: быстрее и доступнее

Второй после Namecoin форк сети биткоина значительно отличается от “материнской” версии алгоритмов Bitcoin Core. Биткоин использует принцип хэширования SHA-256, тогда как лайткоину присущ scrypt. Один блок в сети лайткоина майнится около 2,5 минут против 10 минут у биткоина. Это ведёт к тому, что максимальный объем эмиссии у лайткоина составляет 84 млн монет, что в 4 раза больше, чем у биткоина. Эти особенности криптографии лайткоина ведут к тому, что его чаще добывают не на ASIC-схемах, а на видеокартах и процессорах домашних компьютеров. Впрочем, сам Чарли Ли, брат которого Бобби, кстати, основал первую китайскую биткоин-биржу, призывал никогда не сравнивать биткоин с лайткоином. “Биткоин это золото, а лайткоин – серебро”. Лайткоин стал первой массовой криптовалютой, которая в мае 2017 года почти одновременно применила технологию масштабирования сети SegWit и провела транзакцию по каналам Lightning Network; Swap.Online уже писал подробно об обоих решениях. Этот необычный опыт – лайткоин стал пионером интеграции обоих решений масштабирования сети – имеет прорывное значение не только для лайткоина, но и для всех форков Bitcoin Core.

Атомарные свапы с лайткоином и перспективы валюты

Атомарные свопы – кросс-чейновые децентрализованные одноранговые взаимодействия – как раз и были впервые проведены с участием сети лайткоин. 19 сентября 2017 года команда Komodo Platform совершила первый атомарный свап между лайткоином и блокчейном Decred, а всего три дня спустя Чарли Ли лично объявил о свапе между биткоином и лайткоином. Хотя с тех пор прошло больше года, разработчики до сих пор спорят о том, чей же атомарный свап с лайткоином является “истинно атомарным”, а чей – нет. Сам же создатель лайткоина, как нам кажется, уже определился с тем, нужны ли лайткоину атомарные свапы. Скромный китайский программист оказался эксцентричным сетевым спикером. Его твиты неоднократно обрушивали рынок – чего стоит одна лишь продажа всех принадлежавших Ли лайткоинов, о которой тот позже сожалел. Вот и сейчас, в конце сентября 2018 года, он выступил с рядом откровений, самое ясное из которых касалось атомарных свапов: “Кроме этого, мы будем и на децентрализованных обменниках, использующих атомарные свапы. Возможности здесь безграничны”.

И здесь время сказать о самом важном.

Почему Swap.Online и лайткоин смотрят в одну сторону?

Технология – превыше всего. С участием лайткоина были проведены первые атомарные свопы, команда Swap.Online первой провела их для EOS и USDT. Решения Lightning Network также будут применяться нашей командой, ведущие члены которой представляли Swap.Online на хакатоне Lightning Labs в Берлине в июне 2018 года.

Долгосрочное развитие, а не сиюминутная выгода. Чарли Ли отказался от пре-майнинга, раскрыв механизм своего форка, имея всего 150 монет. Swap.Online не проводили ICO, возлагая надежды лишь на функциональность токена SWAP.

Будущее – за атомарными свопами и кросс-чейном. Снова слово господину Ли: “Лайткоин взаимодействует с биткоином по каналам Lightning Network через атомарные свопы”. Swap.Online является одним из немногих децентрализованных сервисов, поддерживающих одновременно биткоин и иные блокчейны.

Мы совершенно уверены: добавление лайткоина станет одним из самых ярких событий этой осени для Swap.Online. По словам Ed Sdwas , отвечающего в Swap.Online за интеграцию лайткоина, при должном умении разбираться в готовом коде, developability нашего проекта позволило быстро и надежно интегрировать такую важную валюту. Прямо сейчас атомарные свапы с лайткоином уже доступны в тестовом режиме: попробуйте провести обмен в нашем тестнете!

Вот как это выглядит: 

Мы уже выпустили лайткоин-кошелек, доступный по прямой ссылке: https://swap.online/litecoin-wallet . Список монет, с которыми доступны атомарные обмены, доступен при нажатии кнопки Exchange.  Выстраивая кросс-чейновый проект для разных сетей, мы сотрудничаем лишь с самыми перспективными и передовыми решениями.


Swap.Online September Development Update: Reconsidering Usability, New Tokens, Tweaks in Core

The Swap.Online decentralized Atomic Swap cross-chain wallet released its mainnet version this September. Our team finalized the first ever Atomic Swaps in USDT and GUSD. By the way, the story is just beginning. Let us go through the progress we made last month together with our lead developer Nikita Dementiev.

stomic swap online wallet update

Usability: On the Road to the Ideal Swap

First of all, we have added some useful features to our User Interface. After analyzing the feedback and the results of some hallway testing, we found that users, both experienced and newbies, are confused after seeing the full list of numerous tokens available for swaps. That is why the possibility of customization of the list of tokens has been implemented: the user is now able to hide any token in just one click.
We have also redesigned the swap (https://swap.online/exchange) page and made it really intuitive. Now users can place and take orders from one page, customize the exchange rate, chose the direction of the exchange and the currency from the dropdown list.
With regard to usability, we have upgraded the EOS storage and trading performance. Everyone knows that it is really difficult to get an account in this network. On Swap.Online, the user now is able to get the keys for EOS for only 0.01 BTC.

Token Integration

As our approach to token listing on Swap.Online is really over-the-counter, we have launched an active listing campaign. Today every valuable and promising project can add its token to our balances for free in a day or two. We ask for nothing but a mutual PR-agreement, which can help both the partners’ and Swap.Online communities to know about each other. For example, we reached agreements with truly fascinating teams — Knowchain, which is building a bridge between crypto and real-word assets, Aeron, which tokenizes the sector of flights safety, and Crowdholding, a blockchain-based startup which addresses the unlimited klondike of commercial feedback. Our developers have built a framework, which made ERC-20 token listing easier than ever before. Icon in .svg, ticker, smart-contract address — that’s it for the listing on Swap.Online. Moreover, the page of the swap with every ERC-20 token is followed by a brief review made by Swap.Online PR-specialists.

That’s how the added tokens look like in our core

The issues with top cryptocurrencies have also been addressed by our listing program. Recently, we added Bitcoin Cash (BCH), the fork of Bitcoin with the third capitalization rate in the world. Now Swap.Online users can exchange the product of Roger Ver for the BTC, ERC-20 and USDT for free.

Core Tweaks

Firstly, we have redesigned some details of the core of our exchange system. The new system of gas calculation now check the average gas fee in the Ethereum network and adds a little before the transaction is sent. This results in the fact that transaction speeds in Swap.Online are always above-average.
Secondly, the mechanism of secret extraction during the Atomic Swap has been reconsidered. Before the update, it was extracted from the ETH smart-contract. Now, we allowed it to be extracted directly from the transaction hash. It leads to an economy of time and resources.
Finally, we rescheduled the mechanism of users identification. Formerly, it was pegged to the peer-id in the IPFS network. Now, it correlates with ETH public address. We achieved this thanks to the economy of IPFS speed.
Today, we are working hard on new token listings and the upgrade of system stability. Also, some details of the interface may be simplified after the analysis of comprehensive feedback.
Stay tuned and do not miss our development updates!

Best regards,

Swap.Online Team

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