An ongoing technology project that aims to replace cryptocurrency exchanges with automated code has enabled developers to trade bitcoin for ethereum directly.
A group of developers from a cryptocurrency startup is releasing as open source a technology that allows for trustless trading between the bitcoin and ethereum blockchains.
Now accessible on GitHub, the code has already facilitated what Altcoin Exchange asserts is the inaugural “atomic swap” between the top cryptocurrencies by market capitalization. With the release, a broader group of developers now has the opportunity to experiment with and enhance the codebase.
For example, with the technology developed by Altcoin Exchange, developers have the ability to construct an Ethereum smart contract that locks ether and releases it only when an equivalent sum of bitcoin is sent to a specific Bitcoin wallet address within a predetermined time window.
Essentially, the developer team at Altcoin Exchange executed the swap using this method, as shown by the Ethereum transaction code that is accessible on Etherscan. It demonstrated the transfer of 0.12345 ether in exchange for an equal amount of 0.12345 bitcoin.
Although the approach may appear intricate or experimental, developers regard this achievement as a practical advancement toward eliminating centralized crypto exchanges by enabling direct asset swaps across blockchains.
First proposed in 2013, the concept of atomic swaps has gained renewed momentum recently, as developers actively test the method to exchange bitcoin for litecoin and bitcoin for zcash.
Nevertheless, it remains crucial to acknowledge that the technology is currently in its nascent phase.