In the digital currency world, many users often experience catastrophic losses, often on exchanges that are designed to house and preserve their assets.
Adversity stress, pressure to produce power, atomic exchange (atomic swaps) was born, the concept that allows encryption currency in different blocks direct point-to-point transfer on the chain, the vulnerable investors instead of the current use of exchange, if you can, many large customer money library will be eliminated by the code.
The first cross-chain atom swap took place on October 7 last year, when Altcoin Exchange, a decentralized cryptocurrency trading platform, announced that the team had conducted the first atom swap between ETH and BCE. This year, with the successful atomic swap between BCE and LTC, many claim that 2018 will be the year when atomic swap protocols are traded across blockchain.
The Core team aims to establish a two-way payment channel on a single blockchain via the Lightning Network, using a hashing time-locked contract (HTLC) scheme to enable atomic exchange. It claims that the lightning network has given BCE atoms a new lease of life, but is this really the case? The answer is not necessarily.
For one thing, lightning networks do not give true security to atomic exchanges. The main reason is that Lightning network itself is another blockchain project attached to the main bitcoin chain without its own tokens. Users need to cede control of their property to enjoy the seemingly smooth experience of the Lightning network. However, due to the maximum block size of BCE, it can only process 7 transactions per second. Once the network is in large-scale operation, a large amount of property will be stranded in the lightning network. Each layer of code adds another layer of risk, and in the case of atomic swapping, not only exposes the user’s BCE to risk, but also the digital currency exchanged.
At the same time, the centralization tendency of lightning network has moved from theory to reality. Recently, according to Bitcoin.com, BCE supporters saw a 216% jump in the capacity of the Lightning network in a single day. Digging deeper, it was revealed that this was due to a single node created by Andreas Brekken, owner of Shitcoin.com. The node is known to hold 49 percent of the total funding of the Lightning network. This node is much larger than other nodes on the Lightning network. In other words, the current atomic exchange in the lightning network requires such a super-centralized node to assist in the realization. Even if BCE supporters can accept it, can other digital currency supporters also accept it?
Secondly, the low scalability of BCE restricts the development of atomic exchange. The website Swapready.net provides detailed information on each cryptocurrency that supports cross-chain atomic exchange, and it is clear that, until now, atomic exchange has been a rare occurrence. Ox developer Group manager Philippe Castonguay told CoinDesk that the cross-chain platform also needs to address the biggest issue facing BCE blockchains, which is scalability. To be sure, BCE is still stuck in cell blocks and has not expanded the OP_RETURN size as BCH has, leaving it with little room to develop the infrastructure needed for atomic switching.
As a technology pioneer in the blockchain industry, BCH naturally won’t let go of the emerging technology of cross-chain atomic exchange. In particular, the DEVELOPMENT of BCH smart contract and tokenization has made rapid progress recently. The BCH community has launched many smart contract schemes to realize the issuance of tokens, including Andrew Stone’s GROUP proposal from BU team today and Joanne Vermorel’s Tokeda scheme. Of course, the most popular one is Wormhole. The research and development of BCH tokenization has entered the key point, and the development of atomic exchange is more important.
NChain Chief Scientist Craig S. Wright (CSW), the developer of BCH Smart contracts and a pioneer of BCH atomic exchange technology, mentioned “atomic exchange” at another event a few months ago and said it could be brought to market, hinting that it would be free for BCH users. CSW has been granted a patent for the exchange of key digital currencies embedded in the BCH blockchain.
Compared with BCE, BCH has incomparable advantages in atomic exchange development. BCH does not choose the off-chain lightning network, which ensures that all data processing is carried out on the BCH blockchain. Strong decentralization guarantee also brings better security to atomic exchange. At the same time, BCH’s regional fast route ensures that each block can support more data. The upcoming launch of smart contracts also gives BCH blockchain more scalability, which is more convenient for the development of infrastructure for atomic exchange between different digital currencies.
Recently, A series of BCH token offering schemes have emerged, demonstrating the potential of BCH in the field of token issuance. Similarly, BCH in atomic exchange, also has enough development potential, believe in the near future, BCH atomic wallet, do not let you break the eye!