Bitcoin Atom Review – Cryptocurrency Guide
What is Bitcoin Atom?
Bitcoin Atom (BCA) is a SegWit empowered Bitcoin fork that is working on-chain atomic swaps and a crossover consensus model. A standout amongst the most alluring segments of Bitcoin Atom is its mission of creating a decentralized advanced resource exchange using hash time-bolted contracts (HTLCs), which would allow for a genuine shared exchange minus any concentrated intermediaries.
A Hybrid Consensus Model
While numerous cryptographic forms of money pick between a PoW (Proof of Work) and a PoS (Proof of Stake), Bitcoin Atom uses a half and half blend of both with the point of increasing network strength and decreasing the influence of miners.
Alluded to as a 51% assault, this speculative assault is the point at which a single gathering of miners controls over half of the network’s mining hashrate. These miners would have the capacity to keep new transactions from gaining affirmations, basically immobilizing the network. Furthermore, they would have the capacity to switch finished transactions or twofold spend coins. As you can imagine, this would suck for all gatherings involved (aside from the saboteurs).
Lightning Network Swaps
A point of convergence of the Bitcoin Atom project, and where it likely gets its name, is its LN usage that will allow for instant off-chain atomic swaps, additionally alluded to as “cross-chain atomic swaps”.
If you’re not acquainted with what an “off-chain atomic swap” is, you’re not the only one. An atomic swap is essentially a cryptographically powered smart contract that focuses on creating a trustless and direct exchange.
An atomic swap makes it feasible for two gatherings to exchange different tokens without the requirement for an outsider intermediary, for example, an exchange while likewise eliminating the danger of default.
“Atomic” gets its name from PC programming as a kind of perspective to something that is indivisible, similar to atoms. In this case, the exchanges are indivisible. Instead of a brought together exchange or escrow managing the transaction, an atomic swap is a straightforward, coordinate transaction.
For instance, if Mike and Ike need to exchange by means of atomic swap, either the exchange will happen and both Mike and Ike will get their separate tokens, or the exchange won’t go through. There is no conceivable circumstance where one gathering can abandon the transaction and leave the funds bonded limbo.
Cross-chain atomic swaps, as you may have contemplated, are swaps between two different digital forms of money running on different chains that use a similar hash algorithm. These swaps should be possible without an outsider intermediary or any exchange and transaction fees.
In a cryptocurrency world where exchange fees float around 0.1% and 0.25% and transaction fees hovering around $30 USD for Bitcoin, atomic swaps are a major ordeal.
If advanced, Bitcoin Atom could possibly understand a considerable lot of the issues preventing numerous cryptographic forms of money from being used for every day transactions.
Atomic swaps, however, are not all sunshine and rainbows. They aren’t the most user-accommodating of things. The absence of an outsider intermediary includes some significant pitfalls. To perform one, you’ll have to do it by means of summon line and this requires some programming knowledge.
As you can imagine, this is a colossal boundary to appropriation for by far most of individuals. Atomic swaps are as yet another technology that is being refined and tried at both a fundamental level, and for mainstream appropriation.
Enter Bitcoin Atom
Bitcoin Atom has possessed the capacity to draw in generally positive consideration as one of the genuinely real potential Bitcoin forks with a novel and pragmatic reason. Looking at the huge number of later and upcoming Bitcoin forks, this is a much needed refresher.
The reason numerous takes a gander at Bitcoin Atom with positive thinking is because of its capability to tackle a tremendous issue in the cryptocurrency world. The execution of Lightning Network Swaps would basically eliminate the requirement for brought together exchanges, the danger of exchange hacks, and also allow users to genuinely use a free distributed computerized currency.
Bitcoin Atom isn’t the main project working on utilizing some type of atomic swaps. Komodo, for instance, performs atomic swaps instead of intermediary tokens within its ecosystem.
Bitcoin Atom plans to use Atomic Swaps by means of Hashed Timelock Contracts (HTLC) on-chain and it plans to conceivably use Lightning Network (LN) off-chain once it is additionally created.
The procedures of exchanging digital forms of money through Atomic Swaps is quite clear and fast contrasted with brought together exchanges:
Put in your request inside your hub.
Get your exchange cryptocurrency.
That is it. The procedure additionally performs quicker exchanges, eliminates delays, retains your private keys, keeps your personality private, and diminishes trading fees to a minimum.
Focal points of Bitcoin Atom
Bitcoin Atom executes Atomic Swaps that are as of now actualized by means of Hashed Timelock Contracts (HTLC) on-chain, and conceivably through Lightning Network (LN) off-chain, which empowers exchange crypto resources specifically between blockchains without go betweens involved.
When trading on outsider exchanges, user must follow certain means, for example, enrollment, verification, depositing your exchange account, placing a request, withdrawal and receiving coin. This procedure can take up a considerable measure of time and depending on the exchange it can take up to 5 days.
Exchange of crypto resources through Atomic Swaps requires just placing request inside a hub and receiving exchanged cryptocurrency.
It implies that you can undoubtedly open your Bitcoin Atom hub and put in a buy or offer request without the agents. It is simple because you can skip the majority of the means required by outsider exchanges.
There are numerous critical focal points of Atomic Swap over unified exchanges, for example, speedier exchanges, eliminated delays (because of missing stores, server slowdown, and so on.), maintenance of private keys which forestalls losing coins, minimal security introduction, mysterious, lower trading fees.
Bitcoin Atom empowers full Atomic Swap similarity with the following crypto resources: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), (DASH), Decred (DCR), Particl (PART), Syscoin (SYS), Viacoin (VIA) and Vertcoin (VTC).
Why Is Bitcoin Atom Important?
The VentureBeat article states: “While the most appealing part of Bitcoin Atom is a potential answer for Bitcoin’s adaptability issues, it additionally has a couple of other differentiating points. Maybe first among these, Bitcoin Atom uses a half and half consensus model that combines Proof of Work (POW) and Proof of Stake (POS), two different kinds of algorithms for reaching consensus, or assention, on regardless of whether a transaction is substantial before it is added to the blockchain. This cross breed model intends to increase network soundness and diminishing the danger that a dominant part gathering of miners could attack the framework.”
As is becoming well known with forks of the Bitcoin blockchain, the team behind Bitcoin Atom are choosing to remain unknown. However, through their site and online networking channels they have guaranteed to give an answer for the double issue of speed and cost, and express that their protocol will run the most recent on-chain and off-chain mechanisms, in particular, lightning network and atomic swaps.
The project uses a consensus mechanism that combines proof of work and proof of stake that will be founded on the old Bitcoin codebase. Bitcoin Atom is focused on restoring the shared parts of Bitcoin and has key mechanical overhauls implanted straightforwardly into the coin.
To condense, Bitcoin Atom is a SegWit empowered fork of Bitcoin that uses on-chain atomic swaps and a mixture consensus mechanism. Bitcoin Atom focuses on decentralization by utilizing hash time-bolted contracts (HTLCs) and its own HTLC API, which allows for independence from intermediaries and for BCA users to straightforwardly swap a generally perceived medium of exchange.
Is Bitcoin Atom the following Bitcoin? Most likely not. However, it is an interesting usage of a mixture PoW/PoS consensus model that could possibly comprehend a considerable lot of Bitcoin’s potential setbacks.
If Bitcoin Atom is even ready to address one or a portion of Bitcoin’s deficits, it will at present need significant appropriation to really give its distributed transactions some steam. Until at that point, it will be an interesting cryptocurrency case investigation of a developing technology that could assume a colossal part in advancing cryptocurrency appropriation on a fantastic scale.