The Komodo project has launched the public beta of its latest product, AtomicDEX, as the platform seeks to enable trustless atomic swaps between different blockchains, currently connecting Ethereum and its tokens to blockchains like Bitcoin, Litecoin, and Dogecoin.
It has been reported that using atomic swaps allows users to trade directly with the native tokens. Someone buying Ether (ETH) with Bitcoin (BTC) would just exchange ownership of the respective coins on their blockchains, without having to use intermediary tokenized representations.
However, the integration comes within a dedicated multi-blockchain wallet built by Komodo, which includes the atomic swap feature. The beta of the trading system officially launched on February 26 (Friday) at 6 pm UTC.
JC, the pseudonymous Chief Operating Officer at Komodo, said that the project aims to connect most blockchain environments, with upcoming integrations including the Cosmos ecosystem and Qtum. In general, the mechanism can support almost any kind of blockchain, though each integration must be added manually.
A new DEX from @KomodoPlatform is out, allowing users to use atomic swaps for quick token swaps. @Chainlink integration is also a possibility though not set in stone. https://t.co/stfbbTZLt9 — Cointelegraph (@Cointelegraph) February 26, 2021
The team is also working on integrating privacy coin Monero (XMR), though with a lower priority.
Likewise, the exchange uses a more classical model of a decentralized order book supported by torrent-based technologies. This is in contrast to the most popular type of decentralized exchange, based on automated market makers like Uniswap.
JC said that the project is also using Band Protocol oracles for setting target prices, though for assets not supported by the oracle network the system relies on CoinGecko.
According to JC, in the future, the team is planning to integrate Chainlink, “as we don’t have to be married into just one oracle solution only.”
Also, JC reassured that the system does not custody or control funds at any point in the mechanism by noting that “Decentralization slows down the [development] process, we can’t just slap bang it all together.”
Thus, one potential drawback of the mechanism is the requirement of higher security, which requires waiting for blockchains to confirm the trade though this is common to DEXs in general.
Source: Cointelegraph