What is the Atomic Market?

Updated on 25 November, 2022 10:26 AM
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    Atomic Market is a shared liquidity NFT market smart contract that is used by multiple websites to provide users with the best possible experience. Shared liquidity means that everything which is listed on one market also shows on all other markets essentially combining different decentralized networks and allowing trades. IUT allows users to list the same products in different markets without any hassle. 
    This is a revolution in the crypto world and will solve the problem of the availability of digital assets.

    The Atomic Market allows software traders to interact with others. The new atomic market is an ad hoc and nondeterministic trading model that may rely on traditional decisions. It encourages the discovery of new trading partners to solve communication problems or perfect market inefficiencies. The evolution of new rules of engagement is well-suited to the software agents.
    Atomic Market is a smart contract in the decentralized network. You can easily build NFT marketplaces using the AtomicAssets NFT standard. Crypto users can list and buy anything in these networks as the NFT liquidity is shared between all marketplaces. 

    Key Features of Atomic Markets

    • Atomic markets differ from electronic marketplaces in three ways: these markets are open-ended, decentralized, and component-based. 
    • The atomic marketplace allows automated agent-based transactions. 
    • The traders are software agents in an atomic market
    • The platform provides expressive interactions between trading agents
    • Atomic marketplaces use logic as a basis for the decomposition of transactions and the negotiations between the different agents.


    How does Atomic Swap Work?

    Atomic Swaps use the Hash Timelock Contract Technology (HTCL). It means before the asset exchange, a smart contract is enforced to check the fulfillment of pre-conditions. HTCL uses 2 key components, HashLock and TimeLock. HashLock allows the transactor to ‘lock’ the smart contract using a key that only the asset depositor holds. The deposited assets can be unlocked only with this key. TimeLock sets the transaction on a timeline. If the transaction is not completed within the specified time window then the funds are returned to the depositor. 


    Benefits of using Atomic Swap

    • Atomic swaps are decentralized and directly manages wallet-to-wallet transactions without even involving a DEX
    • Its HashLock and TimeLock mechanism enhances the security of assets during the transaction and in case of any failed transaction safely return the funds
    • It has a lower P2P trading Cost compared to centralized platforms
    • It enhances the flexibility of transactions. Some DEXs like Coinbase don’t allow all coins to trade but Atomic swaps solve this problem by allowing almost all cryptocurrencies to be exchanged

    Atomic swaps are automated smart contracts that allow the exchange of tokens over two different blockchains. This eliminates the need for a third party to supervise transactions or trades. It reduces counterparty risk as transacting parties mandatorily don't know each other’s identities. Atomic swaps execute trades directly between users’ wallets. It follows a decentralized ‘peer-to-peer’ (P2P) payment system. It is also designed to prevent the transacting parties from cheating and being ‘trust-less’.

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