Through mutual exchange between users of two chains, the feature would be a medium for the value transfer between two separated blockchains.
What is atomic swap?
Atomic swap is a protocol enabling two untrusted parties to make a value trade without depending on a third party. The protocol prevents one of the parties from not following the conditions of a transaction. Thus, atomic swap contracts are either fully completed or reversed.
The developers stated that the function enables users to exchange values between Ethereum and Ethereum Classic, Ethereum and Bitcoin and even Decred and Litecoin.
However, the protocol will begin implementing the service with the first pair mentioned above. Then, it will move to the DAI/ETC and USDT/ETC pairs.
Saturn started the first atomic swap between the DCR/LTC three years ago, Saturn developers said. They added:
“Making cross-chain atomic swaps really work at scale is as much a technical problem as it is a user experience challenge. Without an easy way to access liquidity there would be no successful marketplace. We are finally at a stage where our fundamental blockchain research, combined with the power of Saturn Rings, will provide cross-chain liquidity (…)”
Moreover, the developers clarified that there are several benefits of the atomic swaps that are not provided by third parties, like centralized crypto exchanges. Thus, users of atomic swaps can fully control the funds used in the exchange, which allows them to spend the funds at any time:
“This is the new, hack-proof cryptographically secure way of trading cryptocurrencies that completely eliminates counterparty risk. Unlike when you use centralized exchanges, your funds will never get stolen by hackers.”
Cosmos Network Foundation reported that Ethereum Classic has been using some hard forks to bolster its compatibility with Ethereum.