What the heck is an ‘Atomic Swap’?

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Let’s acknowledge an ongoing problem:

(And no, it’s not Seb’s new habit of using the word “boisterous” in professional communications for laughs – although that’s a problem…)

It’s the ongoing transfer hacks in Web3.

Many people would argue that hacks are just the growing pains of a new industry – and they are! But it is clear that they must be stopped as soon as possible.

One solution is to create a decentralized exchange (DEX) that uses atomic swaps to facilitate exchanges.

…cool – what the hell does that mean?

Picture this: You’re in fourth grade and plan to trade baseball cards with a classmate.

Instead of having to trust each other to play fair, you give your cards to a buddy, who verifies that both cards are legitimate before completing the exchange.

Atomic swaps are much the same, but for crypto tokens – and they are verified by computer code, rather than by a (potentially corruptible) human intermediary.

Good news for Web3 security:

There is a company called Portal that has that just closed a $34 million funding round, with plans to create a DEX that supports atomic swaps.

We’d love to see it!

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