Cross Chain Atomic Swap

Definition ∞ A cross chain atomic swap is a peer-to-peer exchange of cryptocurrencies between different blockchain networks without requiring an intermediary. This direct exchange relies on cryptographic protocols that ensure either both transactions complete successfully or neither does, preventing loss for either party. It represents a significant advancement in interoperability, enabling trustless value transfer across disparate ledgers. Such swaps enhance the liquidity and utility of various digital assets.
Context ∞ News regarding cross chain atomic swaps often focuses on their potential to reduce reliance on centralized exchanges and improve the efficiency of decentralized finance (DeFi). While the technology offers considerable benefits for privacy and security, its practical implementation still faces scalability and user experience challenges. Ongoing developments aim to simplify these swaps, making them more accessible for routine digital asset transfers.