Atomic trade execution allows for the simultaneous exchange of assets between two parties without the need for a third party intermediary. In the context of cryptocurrency, this means that both parties can agree to a trade where the transfer of assets is either completed in full or not at all. This eliminates the risk of one party receiving assets without sending the agreed-upon assets in return.
When an atomic trade is executed, the assets are either swapped between the two parties in their entirety, or the trade is canceled if one party fails to uphold their end of the agreement. This ensures that both parties either receive the assets they agreed upon or retain their original assets, without the possibility of partial completion or loss.
Atomic trade execution is achieved through the use of smart contracts, which automate the exchange process based on predefined conditions. This technology ensures that transactions are completed securely and efficiently, without the need for trust in a central authority.
