You want a secure way to swap tokens. A function that eliminates risk, as transactions are only settled once both parties have lived up to the terms of the contract. This type of conditional swap is what we’ve built.
Our service is an intuitive way to securely swap tokens with other network participants, using the same proven technique that powers the Bitcoin Lightning Network and many Decentralized Exchanges.
Tokens can be securely exchanged through the usage of Hashed Time Lock Contracts (HTLCs) that serve as digital escrow services. These contracts abstract the need for a third party settlement broker and offer “atomicity” for the proposed bi-lateral exchange.
The security of these escrow smart contracts allow for any token owner to propose and execute token exchanges with other parties in the consortium with the peace of mind that under no circumstances would they lose their token due to malicious intent from their exchange counterparty. This content will explore the constructs of an HTLC and walk through the Kaleido Swap Service.