Atomic Swap

📘 Concept: Atomic Swap

🧩 ELI5 Allegory:

Imagine you're at a train station, and you're about to trade your old bike for a new one with a friend. You both agree to make the swap simultaneously, so you both get what you want immediately. If one of you doesn't show up or tries to back out, the deal falls through, and the bike stays with the original owner. This is similar to an atomic swap, where two parties exchange digital assets, like cryptocurrencies or tokens, without the need for a central authority or third-party intermediary.

📖 Standard Definition:

An atomic swap is a type of decentralized, peer-to-peer transaction that allows two parties to exchange digital assets, such as cryptocurrencies or tokens, without the need for a trusted third party or intermediary. The transaction is designed to be atomic, meaning that it is either fully completed or fully rolled back, with no intermediate states. This is achieved through the use of smart contracts and cryptographic techniques, which ensure that the transaction is secure, transparent, and trustless.