Atomic Swaps
Most of the posts on this sub is about "HODLING", "TO THE MOON", "LAMBO TIME"…..
I'd like to dive a bit deeper into the practical features of the coin, leaving profitability aside for a minute.
I'm reading on the discord and github that the RVN developers are working on Atomic Swaps. I understand what Atomic Swap is (the ability to create contracts to exchange assets between multiple parties with no exchange involved).
Is the intention to have cross chain swaps (coin to coin) or RVN assets only? I understand how code can be made to create RVN asset contracts since it's all on the same chain.
If it's cross chain, how does it work?
My theory is that smart contract creates single use/throwaway coin addresses and secret keys (which is only known to the smart contract itself). The parties transfer coins to those temporary addresses and if the conditions are met it executes the transfer to the involved parties' wallets.
E.g.
Scenario: We have agreed to swap my 1 ETH for 1 of your BTCs (great deal for me :))
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I provide the smart contract with my BTC address and you provide your ETH address.
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The smart contract will create an ETH address for me to deposit my 1 ETH and a BTC address for you to deposit your 1 BTC.
The keys to those addresses are only known to the smart contract (no people can access them. -
We then both review the accounts and approve the transactions.
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The smart contract will execute the transactions and move the coins to our respective BTC and ETH wallets completing the contract.
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If the conditions are not met or one of the parties pulls out, the coins are returned to the original wallets, less any network fees.
Is that how it will work? (at a VERY high level). Or did I just solve cross chain trade decentrilization in 5 bullet points 🙂
I noticed there is a RavenTrader.net website for swaps but it seems to be limited to RVN Assets (and probably a test platform).
For the record, I run a RVN node and mine ETH, some of which some is converted to RVN. I may choose to invest more but I need to get a better understanding of the practical use cases, otherwise it's "just another coin".
submitted by /u/Exact-Explanation936
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