An Introduction to the AtomicSwap Tool
In order to provide community members with a convenient and secure tool for swapping between BCH and SBCH, several tools based on AtomicSwap have been developed and will soon be launched.
AtomicSwap is an effective tool to address the liquidity issue between the main chain and the sidechain of BCH. Using the AtomicSwap tool, the SPV can assist many sidechain users in converting their SBCH to BCH on the main chain, or vice versa.
AtomicSwap is a well-established method for swapping tokens across blockchains, enabling two parties to exchange assets on both chains. Strictly speaking, AtomicSwap is not a “cross-chain bridge” as it does not alter the total amount of tokens on each chain, nor can it generate new coins on the sidechain in the BCH/smartBCH scenario, nor can it burn coins on the sidechain and reissue them on the main chain.
AtomicSwap does not require trust in any centralized third party, and the two trading parties do not need to trust each other either. While bridges hold assets on behalf of others, a swap service does not provide custodial services, and users of a swap are not exposed to the same counterparty risk as bridge users. The two parties involved are the market-making bot on one side and the regular users on the other. Besides the SmartBCH Alliance, anyone can run a market-making bot since AtomicSwap is a permissionless protocol and the market-making bot code is open source.
We appreciate the patience and support of the community and hope that you will continue to assist us in reviewing and enhancing this tool. The underlying smart contract and covenant code can be found in these repositories:
https://github.com/smartbch/atomic-swap-covenants
https://github.com/smartbch/atomic-swap-contracts
The code for the market-making bot is available at
https://github.com/smartbch/atomic-swap-bot
The code for the front-end UI can be found at:
