Blockstream has launched an atomic swap tool for its Liquid Network sidechain, enabling transaction of digital assets between blockchains.
On July 1, 2019, Blockstream announced that it has launched a Liquid Swap Tool on its platform. This tool allows users to execute atomic swaps for crypto assets on the Liquid Network, Blockstream’s federated Bitcoin sidechain.
Atomic swaps are trustless exchanges of cryptocurrencies between two parties based on a smart contract. The transactions can happen between assets of different blockchains, on- or off-chain, and do not rely on going through a third-party service like a crypto exchange. During the process, users retain full control and ownership of their private keys.
The company also released a configuration guide as part of its developer resources set, to help users get the hang of using the tool effectively.
According to Blockstream’s announcement, the atomic swaps will support “any issued asset such as L-BTC, tokenized fiat, crypto assets, attested assets and more” and will work as a second-layer integration on user wallets that are supported by the Liquid Network.
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atomic swap between native assets on Liquid L-BTC, L-USDT etc is simpler than cross-chain atomic swap, because the Bitcoin UTXO model transaction rule "inputs add up to outputs" is extended to add up inputs of each type, and types/assets are natively understood @blockstreamhttps://t.co/hk5dKqTBlX
— Adam Back (@adam3us) July 1, 2019
">tweet, Blockstream CEO and hashcash inventor Adam Back explained the workings of the solution.
The announcement also adds to the continued progress of Blockstream’s Liquid Network. Back in May, the company announced the expansion of the network to include 14 new members, including crypto exchange Bitfinex and cryptocurrency finance platform RenrenBit.
The move brought its total member tally at the time to 35. Bitfinex Chief Technical Officer Paolo Ardoino described the expansion as a necessary step which ensures that more institutions can issue digital assets under a single blockchain.