Cryptocurrency users are already used to exchanging tokens using decentralized exchanges (DEX). In this way, it is possible to convert several cryptocurrencies, such as Ethereum (ETH), Binance Coin (BNB), into tokens.
So far, DEXs only allow exchanges between tokens of the same blockchain. In this case, Uniswap is the most used for Ethereum tokens and PancakeSwap for Binance Smart Chain (BSC) tokens.
However, a new protocol is allowing the exchange of cryptocurrencies between different blockchains, such as Bitcoin (BTC) and Monero (XMR).
The initiative in question belongs to COMIT, a protocol that has been in development since the beginning of 2021. Its objective is to carry out exchanges between BTC and XMR in a decentralized and therefore non-custodial manner.
Since May, the process has been available to end users and now starts to move thousands of dollars.
For this conversion platform to work, liquidity is essential. For this purpose, the users themselves would directly provide the liquidity.
The UnstoppableSwap provider is one of the portals that offers a graphical interface that uses the COMIT protocol for decentralized exchanges between blockchains.
Due to the protocol’s own limitations, currently, switches are only made from BTC to XMR. However, users can become XMR providers, thus allowing to sell XMR to BTC.
The functionality has been attracting developers. In this regard, enthusiasts such as analyst Seth offer a series of guides on how to use COMIT and UnstoppableSwap, both to switch BTC and to become a liquidity provider.
According to Miguel Arroyo, COMIT makes use of HTLC signatures, which allow the creation of conditional transactions. Thus, if a certain condition is not met, resources are not released. The solution made this type of exchange possible without intermediaries.
“The challenge of the project was that Monero, within its protocol, did not work with the HTCL companies. For this purpose, COMIT developed an algorithm that serves as an interpreter, bringing this type of signature, typical of Bitcoin, to the Monero network”, said Arroyo.
Read also: About 74% of real estate funds appreciated in July
Also read: Report: cryptocurrency adoption explodes by 880% worldwide; Brazil is 14th in the ranking
Read also: Mysterious address moves BRL 115 million in Bitcoin after almost eight years