Definition
An atomic swap is a cross-chain exchange mechanism that enables two parties to directly trade cryptoassets on different blockchains under an all-or-nothing condition. It relies on cryptographic primitives, typically hash time-locked contracts (HTLCs), to ensure that either both asset transfers finalize or both are canceled, eliminating the need for a centralized intermediary or custodial escrow within the swap process.
In Simple Terms
An atomic swap is a way for two people to trade coins on different blockchains so that either both sides of the trade happen or nothing happens at all. The swap is controlled by code and cryptography, not by a middleman, which prevents one party from ending up with the other’s funds without completing their side.
Context and Usage
Atomic swaps are discussed in the context of cross-chain value exchange and decentralized trading architectures. They appear in research and implementations focused on trust-minimized interoperability between independent networks, often as an alternative to custodial cross-chain services. The term is frequently referenced in technical conversations about non-custodial trading, on-chain settlement guarantees, and protocol-level mechanisms for coordinating asset transfers across heterogeneous chains.