Atomic Trade

An atomic trade refers to a type of cryptocurrency transaction where either the entire trade is successfully executed, or it is completely reversed. This means that the trade is designed in such a way that both parties either receive the agreed upon assets, or they do not receive anything at all.

In atomic trades, there is no risk of partial fulfillment or incomplete transactions. It ensures that both parties are protected from any potential loss or fraud during the exchange of assets. This is especially important in the world of cryptocurrencies where transactions are irreversible once they are confirmed on the blockchain.

Atomic trades are often used in decentralized exchanges where users directly exchange assets with each other without the need for a third party intermediary. This provides added security and trust in the transaction process. The term “atomic” comes from the idea that the trade either happens completely or not at all, similar to a nuclear reaction where atoms either split completely or remain intact.