A decentralised technology called CoinSwap enables users of cryptocurrencies to trade their coins privately and securely. In other words, nobody else participates in the transaction but only the individuals who are interested in it. One of the fundamental goals of cryptocurrencies is to provide tools that safeguard our privacy, and CoinSwap is a helpful tool for reaching that aim. So now it is easy to become a crypto trader because of the profit builder system.
Why Was CoinSwap Created?
CoinSwap is a decentralized cryptocurrency exchange protocol that aims to build a platform for trading cryptocurrencies. The concept behind CoinSwap is quite similar to atomic swaps, which allow for rapid and custody-free on-chain transactions. However, compared to atomic swaps, CoinSwap is significantly easier and more adaptable.
When renowned Bitcoin developer Greg Maxwell posted about CoinSwap on the Bitcointalk forum with the title “Transaction graph disjoint trustless trading,” the concept and original architecture for the platform were formed.
The goal at the time, according to Maxwell, was to develop a cryptocurrency exchange mechanism that could be used alongside Bitcoin without requiring changes to the latter’s mechanism. In this way, Maxwell drew inspiration from coin mixers and Sergio Dan Larimer’s P2PTradeX to develop CoinSwap, a brand-new safe, non-custodial, and most importantly privatized trading system.
How Does CoinSwap Function?
The core of CoinSwap is two users who want to trade cryptocurrencies, each of whom uses their blockchain to carry out the transaction. CoinSwap uses a variety of technologies to make this trade possible. As a result, the transaction can only be manipulated by both parties working together once the exchange participants have cryptographically signed it.
Furthermore, CoinSwap enables the two customers to trade respective digital currencies throughout the payment transactions without allowing a foreign entity to create a connection between the parties participating in the exchange. The best part is that this can happen without any modifications to the Bitcoin protocol.
The activities you conduct with CoinSwap will be completely anonymous and private. In this regard, the protocol has considered a variety of responsibilities to render this goal become a reality. In light of this, CoinSwap may do the following:
- CoinSwap can carry out many activities to circumvent this issue, which allows web analytical techniques to create a link between participants using the same number of operations. To avoid the association between activities and quantities, it simply implies that if a person wishes to exchange 10 BTC, they will send those 10 BTC to us via many operations. In this approach, our privacy will be ensured and also no research will indeed be able to link our activities to our security.
- The only parties participating in CoinSwap are the ones who conduct the exchanges, making it a truly decentralized system.
- To get the highest level of anonymity, routing as well as multi-transaction shall be integrated.
CoinSwap Benefits And Drawbacks
- It offers an extremely high degree of privacy as compared to its rivals and even exceeds CoinJoin by addressing several issues.
- The tracking of CoinSwap transactions is more challenging.
- It is a method that can easily be adapted to other derivative cryptocurrencies and does not require modifications to the Bitcoin protocol.
- Since there are several actions between the parties and the protocol is very involved, more network capacity is needed.
- A CoinSwap could not be completely secure if the nodes are not sufficiently synced for whatever reason or are perhaps the targets of an attack.
Many trading platforms are budding on day to day basis in the crypto industry. One such platform CoinSwap is also discussed here in the article as well, I hope you would draw the necessary information from the article.