Atomic Swap Failure

Definition ∞ A failure in an atomic swap means a cross-blockchain transaction did not complete successfully. These transactions are designed to exchange cryptocurrencies directly between different blockchains without a centralized intermediary. An atomic swap failure occurs when one party does not complete their part of the exchange within the allotted time, or due to technical issues such as network congestion or smart contract errors. This results in the funds being returned to their original owners, maintaining the atomic property of either all or nothing.
Context ∞ Atomic swap failures highlight the technical complexities and execution risks associated with decentralized cross-chain exchanges. News reports often cover such incidents when they affect user funds or reveal vulnerabilities in underlying protocols. These failures underscore the ongoing need for robust protocol development and improved user interfaces to enhance the reliability of direct crypto asset transfers.