Although we are only now starting to realize the potential of cross-chain atomic swaps, there are more advanced solutions in development. The main downside of atomic swaps is that they only support currencies of the same type. SmartBridge, on the other hand, is capable of communicating with blockchains powering different types of cryptocurrencies. Although the technology is far from finished, it warrants a closer look.
SmartBridge is a Major Game Changer
Cryptocurrency developers are looking for new ways to exchange value between different blockchains and currencies. So far, these efforts have not resulted in any major changes. Virtually all trades still take place through centralized platforms. These exchanges and service providers are a weak link in the world of decentralized cryptocurrencies. Removing these intermediaries from the equation will not be easy, though.
This is where cross-chain atomic swaps come into the picture. Litecoin developer Charlie Lee is actively developing this concept as we speak. In fact, he completed such an atomic swap between Litecoin and Decred just the other day. While that was a major breakthrough, it is not necessarily the best solution for exchanging cryptocurrencies directly. A SmartBridge would make a lot more sense in this regard, assuming developers are willing to experiment with it.
What the SmartBridge does is effectively connect different blockchains with one another. Every currency making use of this technology will become more powerful and valuable as a result. Additionally, applications developed on any of the supporting blockchains will be able to use all of these coins and currencies without friction. Plus, it can even bring specific altcoin functionality to Bitcoin users in the process if needed. It’s a very interesting concept to look forward to, assuming it is implemented in the first place.
No one will be surprised to hear blockchains cannot communicate with one another directly, as they are not built for that purpose whatsoever. However, a small piece of code would certainly make communication between blockchains possible. Blockchain developers will need to integrate a specific data section which is capable of bridging the gap between different blockchains. In its current state of development, this snippet of code poses no harm to blockchains whatsoever.
The one downside to the only working SmartBridge available today is that it needs to go through the ARK blockchain. The ARK project has been focusing on SmartBridge technology for some time now. ARK chain will consequently be the go-to intermediary for all other cryptocurrencies utilizing this concept. That’s not necessarily a solution most people will readily use, as the goal is to decentralize anything and everything. Rest assured some developers will come up with ways to avoid reliance on such intermediaries in the future.
All things considered, SmartBridge seems to be more advanced compared to cross-chain atomic swaps. However, both concepts have their advantages and drawbacks, regardless of how you want to look at things. SmartBridge is definitely something to look forward to, as it would make all supported cryptocurrencies more appealing to the masses. It would effectively eliminate competition between coins, as everyone could access the same features on an even playing field. Such a technology will significantly impact the cryptocurrency sector as a whole; that is for sure.