Free, private, non-custodial, and secure cross-chain atomic swaps between BTC, ETH, ERC20s, and RSK tokens.
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Hosp, J. CoRR Google Scholar. Han, R. Buchman, E. Maxwell, G. Noether, S. Ledger 1 , 1—18 CrossRef Google Scholar. Nolan, T. Poon, J. Poelstra, A. Prestwich, J. Sasson, E. How did we evaluate the idea? We pitch our deck in front of our first investors, and they enjoyed the idea of a DEX. They wanted us to integrate bitcoin in the DEX as it is the most well-known cryptocurrency and the most desired trading asset.
- Account Options.
- Atomic Swaps!
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We have had that same question a thousand times after that. There is always this question about investments.
- Bitcoin-Ethereum Atomic Swap Code Now Open Source.
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- Atomic Swaps Defined;
Of course, we need investments to research and build all these protocols and applications. For that purpose, we found a Blockchain VCs that share our values. They have the same desire to bridge the blockchains and to support us in the hard path of building a multichain, unstoppable decentralized exchange. We have had two investors so far. The first of them is Aeternity Ventures - they are making a highly scalable blockchain and a whole ecosystem around it.
The second investor that we had is based in Singapore and supports many of the top Ethereum projects. We have our headquarter in Singapore and a subsidiary company in Bulgaria. We are in preparation for our A round. Therefore new investors and collaborators are more than welcome. I would say that all these years were part of the preparation for JellySwap protocol and this multichain, multi smart contract cutting edge challenge.
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We started working heavily on JellySwap in the beginning of after long hours of discussing, brainstorming and evaluating. Many real users, together with our team, have been testing the application for two months. We have passed security audits on our Ethereum HTLC contract, and generally, we have spent more than a year until our mainnet release. Since the beginning of , there have been many new applications in the Ethereum space. DeFi has been established as one of the most promising movements in the whole blockchain ecosystem. The whole ecosystem was much different and less developed compared to its current state.
Atomic Swaps Defined
However, lack of interoperability between BTC and Ethereum remains one of the most significant and still unsolved problems, which was recently confirmed even by Vitalik Buterin. First and most fundamental algorithm that we decided to work on was the hash time atomic swap algorithm. It was originally discussed at one of the bitcoin forums. People were addressing the need to swap Bitcoin for some other cryptocurrency in a decentralized, trustless, and secure manner. We used that original idea with hash and time locks, but we have extended it a lot until we reached the current state.
We have developed smart contracts for all of the networks that we are supporting. We have hash time lock contracts for Ethereum, Bitcoin, erc20s, Aeternity, and Tron. It was challenging to build even a simple HTLC on Bitcoin - it is the first blockchain, but the Script language, which is stack-based, is lacking resources, and it is much more limited than Ethereum and its Solidity smart contracts. Then we did our front-end widget and connected it to the smart contracts. Last but not least, we have created a market-making software. That was our key innovation and the main difference between the JellySwap HTLC algorithm and the original idea discussed in the forums.
We released our initial version on the testnet in November , and mainnet version 3 months later. We are striving to write clear code and smart contracts which are covered by unit tests. All of the logic and main algorithm are open-source. Therefore anyone can verify the code on their own as well. A BTC audit is in progress. We have many friends in DeFi, and we are slowly building our community. We are grateful for all the priceless feedback, code reviews, and suggestions for improvements.
We are communicating closely with most of the projects in the space - well-known dex aggregators like Paraswap and 1inch.
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DeFi is a fantastic environment where everyone is supportive and open to help on a daily bases. We have faced some difficulties with BTC users onboarding. Next, Alice generates or picks a secret - in this example her secret is XYZ. Using a hash function she generates a lock here: 1b9f… , which is simply the hash of the secret. Now she deposits the amount of bitcoin she and Bob agreed to exchange in the contract where they are locked. Lastly, she sends the lock to Bob. Bob also creates a Hashed Timelock Contract, but this time on the Horizen blockchain.
His contract also has an address, BCD in this example. Alice sent him a lock the same one she used so he goes ahead and locks his contract with the same lock. Lastly, he deposits the amount of ZEN the two agreed to exchange. Now both contracts are set up on their respective blockchain. Alice has to take the next step within the locking period, otherwise, both are refunded at nothing happened at all.
JellySwap - Atomic Swap Cross-chain Exchange
This is a public operation, auditable on the blockchain. Without having to trust each other Alice and Bob have now successfully exchanged their coins, without having to involve a middleman. When Bob receives the lock from Alice, he can verify that she used the same lock by looking at the Bitcoin blockchain. If Alice would not redeem her ZEN, then both of them would automatically get refunded. There are few wallets that enable users to do Atomic Swaps, yet.
So far there have been only a small number of Atomic Swaps completed. Here is a short list:.
The technology is very promising, but to achieve adoption wallets will have to build a user-friendly interface to use Atomic Swaps. This will take a while, but the technology is very promising and could very well enable a new class of use cases for cryptocurrencies. Atomic Swaps present an alternative to the centralized exchanges used today.