Atomic Settlement

Atomic settlement is a process in which two parties exchange assets simultaneously and directly on a blockchain. This means that either both transactions happen successfully, or none of them happen at all.

In the context of cryptocurrency, atomic settlement eliminates the risk of one party not fulfilling their end of the agreement, as both transactions are essentially linked together. This ensures that the exchange is fair and secure for both parties involved.

The term “atomic” refers to the indivisible nature of the settlement – either both transactions are completed, or neither of them are. This simplifies the exchange process and reduces the chance of disputes or fraud.

Overall, atomic settlement provides a guarantee of trust and security in cryptocurrency transactions, making it a popular method for exchanging digital assets on the blockchain.