I’d like to suggest the further discussion on the implementation of Cross-chain Atomic Swaps on aeternity through the use of Hashed Time Lock Contracts.
Atomic swaps allow the trading of cryptocurrencies between different blockchains like for example trading Ethereum for Aeternity without any intermediary.
The hash-locked contract would be run both blockchains, an initiator will create a contract and lock an amount X of AE in it. The same will be done with ETH on the Ethereum blockchain, with the contracts being valid for a specified time period. These ensure that the swap is completely trustless.
They pretty much allow your average user to run truly decentralized exchanges, not needing to rely on any 3rd party exchanges at all. Users can deal and transfer coins from different blockchains between each other directly.
At the moment there are quite a few decentralised exchanges but to my knowledge there is no exchange which does cross-chain exchanges without the use of derivative tokens which are given to you by a trusted gateway, which defeats the trustlessness of the system.
In my opinion, Aeternity having cross-chain atomic swaps is crucial in distancing the ecosystem from
the reliance on centralised exchanges, and further improving privacy, security and transparency in the process.
- Francesco @ Simply-VC