Yesterday I made the announcement that we had the first successful atomic swap between IoP and KMD.
I think now it’s the time to explain what this is and what this means for IoP.
An atomic swap is a function to transfer value across multiple blockchains. It’s one of the easiest smart contract use cases.
Person A wants to exchange 2 KMD to 8.8 IoP.
So Person A creates a offer by using a decentralized exchange (DEX) like BarterDEX via the Agama Wallet on the KMD and IoP Chain with the content „Sell 2 KMD at a rate of 1/4.4“.
If now person B wants to do the trade he sends those 8.8 IoP to the Person A’s Adress and the 2 KMD are automatically send to person B’s wallet.
It’s like the service provided by ShapeShift, but without the need of a centralised service as trust system – the system is trustless itself.
This means we are now able to create e.g. a multiwallet service where you can directly exchange your IoPs tot he coin you need right now. For example: If you hold most of your value in IoPs but you need BTC to pay an bitpay invoice you could directly exchange your tokens by just scanning the qr-code and click on send (the whole exchange process is done in the background and without the need of any central authorities).
Oh, and BTW: Something like loosing your money like it happend some years ago with mtgox won’t be possible anymore if you are just using atomic swaps for your exchanges – because it’s a real trustless system.
You could try the agama wallet yourself, but remember it’s still a beta and IoP isn’t allready integrated in the GUI of the agama wallet.
For details how to install the Agama wallet just take a look here on the pages of our friend from SuperNet: