What is an Atomic Swap?

So, if someone needs to exchange Bitcoin for Litecoin, simply find someone who needs your Bitcoin and is willing to deliver Litecoin to change.


Atomic swap is a technology that facilitates the exchange of two cryptocurrencies different through the use of a contract smartphone, which allows users to make exchanges from your wallet and personal in a transaction a peer-to-peer. The first described a protocol the Atomic Swap was probably Land Nolan in 2013. But already in 2012, Daniel Larimer had submitted its P2PTradeX, a protocol exchange with no confidence that have been considered by many as the prototype of the Atomic Swap. Since then, there are many developers who have experimented with these protocols that have played an important role in communities such as Bitcoin, Litecoin, Decred and Komodo. As is known, the first Atomic Swap were in 2014, but it was in 2017 when it was publicly acknowledged with the first exchanges with success among cryptocurrencies. We trade BTC/LTC and LTC/DCR.

How it works the protocol Atomic Swap

As we have already said, is a protocol designed to facilitate the exchange of cryptocurrencies different. So, if someone needs to exchange Bitcoin for Litecoin, simply find someone who needs your Bitcoin and is willing to deliver Litecoin to change. This exchange is possible thanks to a contract smart contrat), designed for a transaction peer-to-peer.

Atomic Swap in practice

We think Andrew you need to swap your LTC for BTC, and Ruben has BTC. Alice is willing to receive the LTC of Andrew, and then Andrew puts his LTC in one direction Smart Contrat, which pretend as a safety deposit box. At the time that Andrés generates your safety deposit box you must create an access key; this key should be share Ruben by using a cryptographic hash. But Ruben can’t still access to the cryptocurrencies because it just has the hash, but not the key. Then Ruben uses the hash received from Andres to generate another Smart Contrat to deposit their BTC. Now for Andrew to withdraw the BTC you need to use the same key that you used Reuben, and in doing so reveals to him the key to Reuben. So, just Andrew to claim the BTC, Ruben you can check out the LTC by completing the exchange. This distribution of keys is known as the Hashlock.

How to occur the Atomic Swap

These transactions carry the name atomic, because it will only be completed if the parties perform what corresponds to him to each one. On the contrary, if one of the parties gives up and does not comply, the contract is dissolved, and the funds are returned automatically, providing strong security to the parties. These contracts can be done in two ways, within the blockhain and out of her. On Chain: these Atomic Swap occur within networks of any criptomoneda, that is to say, within the blockchain, whether it be Bitcoin, Litecoin or another. Off Chain: for these Atomic Swap is made must take place on a second layer, and is usually done through exchange, bi-directional, very similar to those that are made through connections of the Lightning network. Usually these exchanges are performed through contracts smart multifirmas and contracts hash time-limited (HTLC)

Wallet for Atomic Swap review

Atomic Wallet is one of the wallets decentralized most popular, designed specifically for the use of this protocol to the blockchain. Available for Windows, Mac OS and Linux. Has available the protocol to be used with more than 300 cryptocurrencies, for fast and secure transfers thanks to the design the own company, Atomic Distributed Orderbook. Between the cryptocurrencies available for Atomic swaps include: Bitcoin, Ethereum, Litecoin, Ripple, Dash, Zcash, Monero, and an extensive list of tokens ERC20. For the security of the storage of funds, the portfolio Now provides the customer with all of their private keys, so that is the only one able to control them. The following two tabs change content below. Creative editor and trader of cryptocurrencies, currencies, fiat, and commodities.

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Litecoin Price Analysis: Is this the end of an Elliott Wave formation?

Litecoin completed the 5 wave pattern marked in black. Now the red ABC consolidation pattern is coming to an end too. The A-B wave stopped nicely …

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‘Digital Gold’ Label Shifts as XRP Correlation to Gold Outpaces Bitcoin

The same can be said about the association between Litecoin and “digital silver”. The critical analysis of the relationships between cryptocurrencies …

Up until the most recent correction, Bitcoin (BTC) price was repeatedly pushing above $10,300 and attempting to reach a 2020 high above $9,500. 2020 started with a strong upward trend and altcoins followed Bitcoin’s price action, as thoroughly reported in Cointelegraph.

This aggregate trend leaves the door open for a full bullish period ahead since the last Bitcoin high growth period was between April and June 2019.

The volatile behavior observed since the start of the year may be causing the traditional assumptions associated with Bitcoin and other top currencies to be challenged. One of those assumptions is the belief that Bitcoin is closely connected to gold.

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrency market monthly overview. Source: Coin360

Cryptocurrencies and the precious metals narrative

A previous analysis reported by Cointelegraph has shown that the digital gold narrative attributed to Bitcoin may not be as realistic as investors believe. The lack of a significant relationship between Bitcoin returns and gold returns as well as the low correlations across the years are contributing to the challenge to the narrative.

The same can be said about the association between Litecoin and “digital silver”. The critical analysis of the relationships between cryptocurrencies and precious metals opens the door for further research.

Correlation between top 10 cryptocurrencies and gold

By analyzing the correlations between the top 10 cryptocurrencies in the market and gold returns during January 2020, we unexpectedly found that XRP, rather than Bitcoin, has the strongest correlation to gold. XRP is correlated at 34.1%, while Bitcoin is correlated at 21.5%. Moreover, both Ether (ETH) and Bitcoin Cash (BCH) share a very similar correlation to gold as Bitcoin does with 20.1% and 19% respectively.

In the opposite direction, Tether (USDT) has an inverse correlation with gold at -37.7%. This is surprising since the behavior of a stable coin like USDT could be more correlated with a precious metal like gold than a much volatile coin like Bitcoin.

A correlation of 100% means that each cryptocurrency and gold move completely in the same direction, while -100% correlation means they are inversely related, or in simpler terms, when one goes up, the other goes down. A correlation of 0% means that each cryptocurrency and gold is not related in any way.

Correlation between Bitcoin and the top 9 currencies since Jan. 1, 2020.

Correlation between Bitcoin and the top 9 currencies since Jan. 1, 2020.

By looking at a wider time frame like 2019, the assumption that Bitcoin is more related to gold is sustained. Bitcoin is correlated at 15.5% with gold for the entirety of 2019, being the most correlated currency with gold from the top 10.

As seen before, Bitcoin Cash is the second most correlated currency with Bitcoin at 8.2%, followed by Bitcoin SV (BSV) at 7.3%. For the entirety of 2019, XRP is less correlated (7.1%) with gold than in 2020, challenging the idea that a stronger correlation can be sustained over a long-term period.

Correlation between Bitcoin and the top 9 cryptocurrencies during 2019.

Correlation between Bitcoin and the top 9 cryptocurrencies during 2019.

Outstanding cumulative returns since the start of the year

The start of 2020 witnessed the start of a strong positive trend. If an investor bought any of the top 10 cryptocurrencies between Jan. 1, 2020 and Feb. 9, 2020, they would be looking at a cumulative return of at least 134%, when Tether is excluded from the analysis. From the top 9 currencies, Bitcoin produced the least profit, shifting one’s emphasis to the possible altcoin bull run ahead.

The biggest positive trend was seen by Bitcoin SV and Bitcoin Cash with a cumulative return of 228% and 179%, respectively. Other top coins like Binance Coin (BNB), EOS, Ether, Litecoin, Tezos (XTZ) and XRP offered investors a cumulative return between 138% and 167%. Meanwhile, gold prices grew by slightly more than 4% in January.

Cumulative returns for the top 10 currencies since Jan. 1, 2020.

Cumulative returns for the top 10 currencies since Jan. 1, 2020.

Cumulative returns for gold in January 2020.

Cumulative returns for gold in January 2020.

Which is digital gold, XRP or Bitcoin?

A recent report from Coinbase suggests that Bitcoin will come closer to becoming digital gold due to underlying features of the network which are similar to the ones shared by gold as the scarcity of the asset aligns with the assumed bullish period ahead.

However, the results also show that since the start of the year, XRP has been the cryptocurrency most correlated to gold and Bitcoin follows in second place. As we move further into 2020, the relationship between gold and Bitcoin may come closer to one observed throughout 2019, when the digital asset was the most correlated coin to gold.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Crypto Market Suffers Massive Price Correction as Ethereum (ETH), EOS, Litecoin (LTC) Make …

Litecoin has enjoyed a fairly positive run in recent weeks with its price progression in tandem with that of leading coin Bitcoin. The last 24 hours has …

Cryptocurrencies are known for their volatility with prices able to change drastically and this is partly what was experienced in the last 24 hours. The market suffered massive price correction with most top coins trading in the red zone.

Leading coin Bitcoin led the bearish movement having failed to surpass the $10,200 resistance barrier. This, alongside movement from major whales resulted in BTC falling below the support levels of $9800.

Bitcoin is currently valued at $9,598 with some analysts suggesting that the coin could suffer more losses in the coming weeks.

The travails of Bitcoin as expected saw the market follow suit with popular altcoins, Ethereum, EOS and Litecoin suffering huge losses.

Ethereum analysis

Ethereum had enjoyed a decent upward run in recent days with the altcoin moving above $275 resistance levels. However, ETH failed on multiple occasions to surpass the $286 mark leading to its current downturn in value.

There was a sharp decline from the $280 mark and the price begun to drop until it reached its current levels below the $260 mark. Ethereum is currently valued at $251 with a loss of 10.29% to the USD in the last 24 hours.

If Ethereum price starts a fresh positive movement the next resistance level will be around $265. However, a bearish trend could see the coin drop to $240.

EOS Analysis

EOS is also one of the coins affected by the recent bearish movement within the market. The altcoin lost 13.09 in value to the USD in the last 24 hours and currently trades at $3.96 per unit.

Looking at the market trend, a positive movement for EOS could see the coin hit the $4 mark. While its next resistance point is likely to be around the $4.30 point.

If the bearish trend continues the next support levels for EOS would be around $3.50.

Litecoin analysis

Litecoin has enjoyed a fairly positive run in recent weeks with its price progression in tandem with that of leading coin Bitcoin. The last 24 hours has seen the coin suffer double-digit losses of around 10.48%.

As at the time of writing LTC is valued at $68.85 per unit and placed 7th on the coin rankings. If the bearish position continues the next support levels will be within $65 while an upsurge in price would put the resistance levels at $70.

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Will Litecoin perform well in 2020?

However, an altcoin that stands out in this journey of superiority is Litecoin. … The Litecoin Foundation also partnered with Cred a few weeks ago .

Will Litecoin perform well in 2020?

Altcoins started strong this year. The cryptocurrency market itself has made a very good introduction to 2020, with major developments expected. However, this does not eliminate the fact that relatively smaller cryptocurrencies on the market are fighting to take top place. Many altcoins, including Tron, Ethereum, Stellar Lumens, Cardano, XRP, all have a strong year regardless of the loss in the past 48 hours.

However, an altcoin that stands out in this journey of superiority is Litecoin. The digital currency was transferred by many experts to break the $ 100 barrier in the first five months of the year in 2019. After the price doubled in August 2019, it lost almost 60 percent of its cryptocurrency value.

LTC started the year at $ 41.12 and progressed gradually towards its current price of $ 70. Litecoin, like other altcoins, has seen a price drop over the past 48 hours, which has lost about 8.84 percent. The cryptocurrency started floating around the $ 75 level and reached $ 80.51 within 3 hours before falling to its current price. According to experts, this unbalanced price movement in the past few days does not show a solid bull run predicted to take on Litecoin, even if the crypto market is on alert.

Accepting Litecoin

Litecoin has largely taken over tourism-related space and is now one of the digital currencies widely accepted by many travel and accommodation service providers. This development highlights the potential of Litecoin as a payment method and further strengthens its basic design that facilitates payments globally. Litecoin’s acceptance rate is also high. This could potentially be the reason behind the bullish trend projected for digital coins.

The Litecoin Foundation also partnered with Cred a few weeks ago . Cred is a global cryptocurrency borrowing and lending company. The company will now allow LTC holders to lend their digital money very profitably, thereby increasing the number of LTC holdings and investors.

It may be too early to draw conclusions from this wildly volatile market, but with Litecoin’s (LTC) current performance and a few enhancements to support it, it seems to be finally able to bring out the performance investors have always wanted.

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