SmartSwap is decentralized face value exchange. eliminates the need for trust between the parties, overcomes some of the Atomic Swap disadvantages. It’s secure, easy to implement, protects the user against losses in case of currency rate changes and it doesn’t require blockchains involvement to have code abilities and the same Hash algorithm (like Atomic Swap does).
Exchanges on the Element Zero SmartSwap example; Trade 1 BTC to ETH:
- At the time of creating the order the trade is BTC is valued at $4,000 and will trade for same value, $4,000 in ETH
- If ETH drops in value by 5%, the user will receive 31.578 ETH ($4,000) - same face value equal to $4,000 of BTC
- If BTC increased value +5% user will end up with 31.5 ETH (equal to $4,000) - same face value equal to $4,000
Using SmartSwap, even if the prices of either coin fluctuate by the time the trade occurs, users will still receive the value of their coin in the traded coin.
Element Zero Smart Swap Testnet (n.d) Retrieved from https://www.elementzero.network/ezo-beta/
Element Zero White Paper Update.pdf. (n.d.). Retrieved from https://drive.google.com/file/d/1StAHmFU-kGnCQ7YLUKR5S9HssjYPyz2t/view
Smart Swap: Face Value P2P With Element Zero CTO. (2019, May 08). Retrieved from https://blokt.com/guides/blockchain-guides/smart-swap-face-value-p2p-with-element-zero-cto
Documentaries, videos and podcasts
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- BlockchainA blockchain is an append-only digital ledger storing a set of time-ordered transactions grouped in blocks that are linked together using cryptographic hashes.
- Blockchain scalabilityBlockchain scalability is the ability for participants in a blockchain network to process and store a large number of transactions. Speed of transaction throughput is often measured in transactions per second (TPS) and the size of a blockchain is measured in bytes of storage required.
- Blockchain interoperabilityBlockchain interoperability is the ability for different blockchain platforms to communicate and transaction with one another.
- Decentralized cryptocurrency exchangeA decentralized cryptocurrency exchange is an exchange market that utilizes blockchain or another decentralized technology to enable peer to peer transfer of digital assets without reliance on a trusted third party to hold funds.
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