On-Chain BCH Used in a Submarine Swap for Off-Chain BTC

 In Exchanges

Technology & Security

This week an individual revealed he had completed the first trustless swap by trading on-chain bitcoin cash (BCH) for off-chain bitcoin core (BTC) using Alex Bosworth’s submarine swap protocol.

On-Chain Bitcoin Cash Submarine Swapped for Off-Chain BTC

The decentralized cryptocurrency bitcoin cash (BCH) was traded over the Lightning Network this week for off-chain bitcoin core (BTC). According to an individual on Reddit named u/Darkdeepths, he says he’s been fortunate to see Bosworth’s submarine swap testing and decided to test the protocol himself. The submarine swap protocol is an atomic on-chain and off-chain trading platform created by Bosworth that allows a person to use on-chain funds to pay for an off-chain Lightning invoice. Users can test the protocol with testnet coins and the process was recently used by Jason Wong for an on-chain litecoin (LTC) transaction traded for an off-chain BTC transaction. The Reddit user Darkdeepths decided to utilize bitcoin cash for the experiment two days ago.

On-Chain BCH Used in a Submarine Swap for off-Chain BTCDarkdeepths BCH for BTC submarine swap.

“I’m trustlessly swapping On-Chain BCH for Off-Chain BTC,” explains Darkdeepths. “I am fortunate enough to get a look at some of the cool submarine swap technology that Alex Bosworth is building — I decided I wanted to test turning some of my on-chain BCH to Lightning Network BTC.”

On-Chain BCH Used in a Submarine Swap for off-Chain BTCConcepts like Plasma and Atomic Swaps have become more popular over the last year.

Related Article:  Tether (USDT) Issues New Tokens Worth $50 Million

Atomic Swaps and Plasma Trading May Invigorate the Concept of Decentralized Exchanges

A few Bitcoin Cash proponents seemed to like the idea that on-chain BCH was swapped trustlessly for off-chain BTC. Darkdeepths experiment was a top post on the bitcoin-cash focused forum r/btc on August 9. Furthermore, Darkdeepths said he may try to reverse the process during his next test.   

“It was pretty exciting executing the swap with real assets,” Darkdeepths says.   

Ideas like these make it possible for people to realize the possibilities of trustless trading and truly decentralized exchanges. Ideas like atomic swaps, and plasma are making it possible for traders to swap cryptocurrencies without a third party involved and many decentralized exchanges are basing their models on some form of cross-chain swaps.

 

Source link: Click here. Disclaimer:  This is a third-party article. The information on the Verified topics are provided on a strictly "as is," "where is" and "where available" basis. Verified topics expressly disclaim any implied warranties. Note Verified topics do not give any financial advice, for more information see our Acceptance of terms.

HOMEPAGE

Start typing and press Enter to search