In August 2021, the Bitcoin-Monero atomic swap went live. It could not have come at a better time – stricter government regulations were enacted on privacy coins, Monero in particular, some centralized exchanges delisted XMR, and a few countries outright banned it. There are still many, though, who prefer having Monero because of its privacy-centric properties. One solution to get Monero is an atomic swap.
What is an atomic swap?
It is a safe mode of exchange, which allows traders who do not know each other to exchange cryptocurrencies with no need for a third-party service provider, such as a crypto exchange. Atomic swaps allow the exchange of two different currencies on two different blockchains. They rely on a Hashed Time Lock Contract (HTLC), a smart contract that controls the execution of each transaction. The HTLC also includes the terms agreed on by the buyer and seller and eliminates the need for an authority to see the exchange through. Swaps are called “atomic” because there can only be two outcomes. If the trade is completed successfully, both parties receive funds or nothing happens and both traders keep their crypto.
You need to be technical-savvy and install the asb software from getmonero.org and follow the instructions to make a Bitcoin-Monero atomic swap. An easier alternative is to go to unstoppableswap.net. There is no need to download any software, has low fees, and does not require personal information. You may use BTC to get XMR, but at the time of this writing, you may not use XMR to get BTC yet. If this is the first time you are getting Monero, it is important to get an XMR wallet where moneroj will be sent.
1. Go to unstoppableswap.net.
2. You will see this when you go to the unstoppableswap website.
3. Pick a preferred swap provider.
4. Enter an amount of BTC or XMR you would like to swap. Make sure it is within the minimum and maximum amount set by the provider. Click “SWAP.”
5. Enter your XMR public address.
6. You can copy the QR code or your public address from your XMR wallet and then paste on the space provided.
7. The other party’s BTC address will appear. Deposit funds to that address.
8. A Bitcoin lock transfer will be published. This will take some time.
9. A Monero lock transfer will be published, which will also take time.
10. Wait for the other party to redeem the BTC.
11. You will redeem your XMR.
12. Swap successful! You may check the code by clicking on “View on explorer.” Go to your XMR wallet and you will find the amount sent to you.
13. Click “DONE” when you are finished or if you want to make another swap.
Why are atomic swaps important?
Atomic swaps is a revolutionary way to get crypto without relying on centralized exchanges that charge high fees, are subject to regulatory and compliance policies, and require personal information from their users. Cypto is made on blockchain technology, which is decentralized by nature. It is but natural that digital asset enthusiasts, especially those who value anonymity, prefer a decentralized method of getting crypto.
The Monero community fully supports atomic swaps, as it makes it more difficult for entities and regulatory groups to impose restrictions. Bitcoin’s blockchain is transparent, but an atomic swap with Monero will enable them to benefit from the anonymity attached to the use of Monero. Atomic swaps take time and need stable power and internet connection. Take these factors into consideration before making a swap.
A few months after the Bitcoin-Monero atomic swap went live, a successful test was run on an Ethereum-Monero atomic swap. It is still in the development stage, but has progressed to 5 out of 7 CCS (Community Crowdfunding System) milestones. It will not be long before Ethereum owners will enjoy the same benefits Bitcoin owners enjoy when they swap ETH for XMR.