A simple and 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.
Trade tokens securely knowing that both parties will either succeed or both parties will fail, ensuring a peace of mind without having to trust your trading partners to act in good faith.
Uses a hash to lock the tokens into a smart contract. Proper secret must be presented to claim the tokens. A timeout is also used to allow refund if either party fails to accept the terms of the trade offer.
Trade ERC20 (Fungible) tokens, ERC721 (non-fungible) tokens, or a mix of ERC20 and ERC721. This allows for use cases to pay for a non-fungible asset trades using fungible tokens.
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.
