A team of cryptocurrency developers has successfully executed an atomic swap between Ethreum and Bitcoin, and is now open-sourcing the technology that has facilitated the transaction.
According to a CoinDesk report, developers at a startup called Altcoin Exchange has developed a technology that enables trustless trading between the two largest cryptocurrency blockchains. The code has been released on GitHub, which will allow for a larger pool of developers to participate in its development.
Altcoin Exchange's technology allows developers to lock Ether, the native token of the Ethereum network, in a smart contract that specifies that the funds will only be sent if an equal amount of Bitcoin is sent to a Bitcoin address during a specific time window, CoinDesk explains. Using this method, the Altcoin Exchange developers managed to execute what they claim to be the first-ever atomic swap between Ethereum and Bitcoin. The Ethereum code for the transfer shows that 0.12345 Ether was exchanged for 0.12345.
The exchange isn’t exactly fair, as it does not reflect the huge price disparity between the two cryptocurrencies. But the technology is still in a very early stage and it will be further developed and expanded in the future. In comments to CoinDesk, Altcoin Exchange’s chief executive officer indicated that the likely next step would be to exchange Bitcoin to Ethereum for their respective USD amounts or another fiat currency equivalent.
In today’s trading, the Ethereum price stood at $307.38, as of 15:18 BST. The cryptocurrency has gained nearly 2% over the past 24 hours, according to data from Coinmarketcap.
For further information on how to buy and trade Ethereum, see our comprehensive Ethereum guide.