Terms such as cryptocurrency bridges and cross-chain swaps have become popular lately. The idea of overcoming limits between different blockchains is quite appealing. That is why many crypto users now use these tools more extensively.
What exactly are cross-chain (or atomic) swaps? Let’s break it down. They are very similar to bridges in the sense of connecting different blockchains. Except for that, its key function is not to provide the transfer of digital assets across several networks. Instead, it allows trading tokens created on one network for the same token on a new network.
This tool exists in the form of cross-chain apps and simplifies conversion. It lets you convert more easily without needing a service or intermediary. In addition, it does not rely on a centralized banking system to launch an operation. The process takes place just between blockchain network users.
Those willing to swap can simply link their wallets to a cross-chain application and enjoy how simple exchanging can be. In this way, you can convert USDT erc20 to USDT trc20, which is also true for tokens of any other standard that you might want to convert.
What Makes Cross-Chain Swaps Take Over?
Swap app tools have some features that make them a better option for many users. To be precise, these are:
- Being less time-consuming.
Here you won’t have to open a new crypto wallet to perform a swap, — the whole process is simple and straightforward.
- Making the most of every conversion.
An aggregator is the feature of finding the best prices for you to maximize profits. In addition, users are offered a variety of tokens they can swap.
- Unique hashlock & timelock technologies.
This is more about the internal work and architecture of such applications. The Timelock mechanism secures transactions on a chosen network and ensures they are finished on time. Otherwise, when the terms aren’t met, it guarantees sending the funds back to the one who deposited them.
In its turn, hashlock mechanism keeps funds safe under the protection of a security key that is only at the disposal of the exchange issuer and only becomes visible to the one receiving the costs after the issuer’s deposit verification.
- Cross-blockchain transactions are cheaper.
Due to a reduced number of formalities and the absence of a centralized authority to make swaps happen, prices of such operations drop drastically.
- Crypto swaps are less susceptible to attack.
In contrast to traditional money swaps, converting crypto is generally safer.
Conventional crypto bridges sometimes also fall victim to hackers since they rely on their own liquidity, while swaps are more protected. Over $2.5 billion was stolen from different crypto bridges. With cross-chain swaps, your operations are more protected.
With these benefits, cross-chain exchange tools have a chance to become a more predominant way to convert digital currencies.
Reliable Cross-Chain Swaps to Use for Facilitating Exchanges
It is generally known that these days, apps such as InterSwap can cope with the task. For instance, this one performs exchanges by linking liquidity pools (at decentralized exchanges) to target chains.
One of the non-custodial exchanges to convert coins from different blockchains is LetsExchange. It also works in a direction from crypto to fiat, since one can swap ETH to USD (erc20 token to fiat).
With the platform, one can access nearly 4,000 coins and tokens. Over 80 fiat currencies are available for purchasing coins. Moreover, you can use either a fixed or floating rate to get the desired amount.
When working with a cross-chain swap tool, users just choose source and destination chains and assets to exchange, for example, ETH to BNB bep 20 to BNB erc20. After that, confirm the transactions and anticipate the result, which won’t take long.