A team of developers is calling on users to participate in the public demonstration with the aim of testing the protocol that allows atomic exchanges between the Monero (XMR) and Bitcoin (BTC) blockchains. The group called COMIT Network reported that it has completed the first phase of the project in which it has been working for more than two years.
A publication on the Monero subreddit invites to carry out atomic exchanges that, for now , are only available to exchange Monero for bitcoin on a testnet , called stagenet . As it is programmed now, the side of the operation that owns bitcoins, must move first and then receive the equivalent in XMR. “We are working on a version of the protocol where the XMR side moves first,” say the developers.
To access the public demonstration, it will be necessary to download version 0.2 of the protocol and then obtain a wallet Monero from the testnet. Then, after completing a few steps, specified in a YouTube video, it will be possible to perform an atomic swap on the testnet .
Atomic exchanges allow the exchange of cryptocurrencies between strangers, without intermediaries .
The operations are carried out under time-blocking contracts and only they will be able to release with two special keys that match the hash. It means that the funds are stored in a kind of safe that will be opened when both parties show that they have received the funds that correspond to them. However, it may also happen that the operation does not materialize as agreed, thereby activating a security mechanism that will return the funds that belong to each of the parties involved.
To understand how this protocol works, suppose that Alice and Bob want to exchange their cryptocurrencies. When Alice checks that Bob has locked her bitcoins, she does the same with her XMR. Until now, the funds of both will not be available to the other, unless they know the secret key of the other party.
Bob he sees that Alice has locked the portion of Monero that he wants to exchange, so now he sends Alice a bit of information with the secret key that will allow Alice to have access to their bitcoins. This is when Alice uses this information to transfer the bitcoins to an address she owns. By doing so, he leaks the secret key where his XMR is stored, so Bob uses this key to transfer these funds to his own address.
Now, the idea of this protocol is that users do not have to perform an additional transaction to withdraw funds to an additional wallet. “What we are looking for is that all this atomic exchange happens in an integrated way with the software of the wallets “, explained Philipp Hoenisch, one of the developers of the protocol during his participation in the Monero Talk program.
Atomic swaps: a step applauded by the Monero community
Community Monero is celebrating that atomic swaps between Monero and Bitcoin are getting closer and closer to becoming a reality. It means that the ecosystem continues to work towards decentralization and the possibility that operations can be carried out without the need for third-party arbitration or without counterparty risk.
Decentralization is a priority for the Monero community, since the options to trade with the cryptocurrency have diminished. This taking into account that several exchanges have withdrawn from their lists the cryptoactive based on privacy , since the so-called travel rule requires users to register on trading platforms with their personal data.
In addition to allowing operations between different chains, without the Need for intermediaries and in a safe environment, atomic exchanges also represent an advantage by offering a mechanism that mitigates risks. This is because, at no time, does it take control of their assets from users. It is also an economical method to operate with cryptocurrencies, since the only associated commissions are those of each network.
As CriptoNoticias reported in October last year, the development of the protocol of atomic exchanges between Bitcoin and Monero was financed by a fundraising project that emerged in September 2020. This initiative was born in response to the need expressed by the user community for the mechanism.