It seems that every few months, a story breaks revealing some sort of wallet or exchange hack. The lack of trust by crypto traders and holders in exchange and wallet security has had a negative effect on the crypto world in general, as the blockchain and digital currency technologies advance into uncharted waters.
In 2018 alone, we saw Bithumb lose $30 Million, Coinrail have $37.2 Million hacked, BitGrail down $195 Million and Coincheck saw an incredible $534 Million worth of digital coins hacked. Already in 2019, Cryptopia, an exchange once billed as unhackable, saw its defenses breached.
Despite the high profile hacks, the crypto world continues, albeit with less volatility than ever before. Digital wallets and exchanges are reacting to the security threats rife within the crypto and blockchain world. The latest development has seen a gain in traction for Atomic Swap Wallets.
What are Atomic Swap Wallets?
Atomic Swaps is the latest development in the crypto industry attracting a bit of attention. It is a process which makes it possible to exchange cryptocurrencies directly, and without the need of third parties. What this means is that you can exchange, for example, Ethereum (ETH) with Bitcoin (BTC) for a fixed and generally small fee. You are unrestricted by amount. You also do not need the services of third-party centralization exchanges.
By removing the third party, you in theory, reduce the risk, reduce the cost and keep the anonymity. So far, a win-win for the crypto world which leavers hackers and government regulatory bodies playing catch up.
Atomic Swap Wallets put the control over crypto trading back into the hands of the user – not the exchange. The Online atomic swap wallet keeps the anonymity and unique KYC/AML neutrality. The technology and process used in Atomic swaps using specialized atomic swap wallets makes it impossible for transactions to be blocked and assets cant be frozen.
The power and security Atomic Swaps give back to the user looks a direct challenge to the burgeoning but fallible crypto exchange industry. Could this be the end of the middle man in crypto trading? only time will tell, but this latest development is definitely making waves already,
