Cryptocurrency
What is Atomic swap?
An atomic swap exchanges two cryptocurrencies directly between wallets, with cryptography guaranteeing that either both sides complete or neither does. It is the common route from Bitcoin to Monero without an exchange account, and therefore without identity verification.
Why Atomic swap matters
It is the common route from Bitcoin to Monero without an exchange account, and therefore without identity verification.
Atomic swap in practice
When running a server, atomic swap shows up as a cross-chain trade executed entirely from your node. You would run a swap daemon that coordinates with the counterparty's wallet, watch the transactions for the required confirmations, and verify the hash-locked contract on each chain. Get it wrong—say, picking an exchange with custody—and you forfeit privacy by handing over identity. The cost is having your trade tied to you for years.
What people get wrong about Atomic swap
The common error is thinking atomic swap only happens on an exchange or requires a KYC check. In fact, the protocol lets two wallets exchange directly, and it's the standard path from Bitcoin to Monero without an exchange account, so no identity verification is involved. The correction: use it for direct, private trades, not as another exchange feature.
Atomic swap — common questions
How do atomic swaps help avoid identity checks?
Atomic swaps exchange cryptocurrencies directly between wallets, with cryptography ensuring both sides complete or neither does. Because there's no exchange account involved, you never submit identity documents. It's the common route from Bitcoin to Monero without an exchange account, and therefore without identity verification—matching OnionVPS's no-KYC stance.
Can atomic swaps work with Monero automatically?
Yes, for direct wallet-to-wallet trades, the cryptography guarantees both sides complete or neither does. The swap takes place entirely on-chain, and no exchange account is used, so it avoids identity verification. For a server operator, it's a standard method to obtain Monero without third-party custody.
Where Atomic swap comes up
- How to pay for hosting with Monero, step by step Acquire XMR through an atomic swap or a decentralised exchange, hold it in a wallet you control, then select Monero at checkout and send the exact invoice …
- How do I buy a VPS anonymously? Use a provider that requires no identity verification, sign up from a network that is not your home connection, use an email alias created for the purpose,…
- How do I pay for a VPS with Monero? Choose a plan, select XMR at checkout, and an invoice appears with a fresh Monero address, the exact amount and a QR code. Send from any Monero wallet. Aft…
More from cryptocurrency
- Monero
- Monero is a cryptocurrency that hides sender, receiver and amount at the protocol level using ring signatures, stealth addresses and RingCT.
- Ring signature
- A ring signature proves that one member of a group signed a message without revealing which one.
- Stealth address
- A stealth address is a one-time destination address generated for each payment so that transactions to the same recipient cannot be linked.
- RingCT
- RingCT conceals transaction amounts on the Monero blockchain while still allowing the network to verify that inputs equal outputs.
- Stablecoin
- A stablecoin is a token pegged to a fiat currency, typically the US dollar, and backed by reserves held by an issuer.
- TRC-20
- TRC-20 is the token standard on the TRON blockchain, most commonly used for USDT.
- Confirmation
- A confirmation is a block added to the chain after the block containing a transaction, each making reversal exponentially harder.