Back to Glossary
Blockchain
What is Atomic Swap?
A peer-to-peer exchange of one cryptocurrency for another without using a centralized exchange, preserving privacy by avoiding KYC requirements.
Atomic swaps enable trustless cryptocurrency exchange directly between two parties using cryptographic contracts.
How It Works
- Uses Hash Time-Locked Contracts (HTLCs)
- Both parties lock their coins in smart contracts
- The swap either completes fully or not at all ("atomic")
- Neither party can cheat or steal the other's coins
Privacy Benefits
- No centralized exchange that requires identity verification
- No KYC documents submitted
- Transaction history isn't linked through an exchange account
- No third party holds your funds at any point
Tools
- Farcaster: BTC-XMR atomic swap protocol
- THORChain: Decentralized cross-chain liquidity
- COMIT network: Multi-chain atomic swap protocol
Limitations
- Fewer trading pairs than centralized exchanges
- Liquidity can be limited
- Bitcoin side of swaps is still visible on Bitcoin's public blockchain
Related Terms
Have more questions?
Use our guided flow to get the right next privacy step for Atomic Swap.
Open Guided Flow