As a seasoned crypto investor with battle-hardened instincts and a knapsack full of digital assets across various blockchain networks, this latest development from 1inch has caught my keen eye. The Fusion+ upgrade, promising secure, trustless, and efficient cross-chain swaps without compromising on self-custody, seems to be the game-changer I’ve been waiting for.
1inch, a decentralized exchange, recently unveiled an update enabling users to trade their cryptocurrencies while retaining control over their assets.
As per the declaration made on September 18th, the 1inch platform has launched an updated version of its 2022 Fusion upgrade, which is referred to as Fusion+, for its Swap Engine.
This innovative feature allows users to exchange various cryptocurrencies across different blockchain networks while maintaining complete control over their tokens. Moreover, it combines on-chain and off-chain liquidity for seamless and secure swaps, and comes equipped with safeguards against Maximal Extractable Value (MEV) attacks.
Fusion Plus operates using Atomic Swap tech, making sure cross-chain operations stay secure, decentralized, and streamlined, all without the risks linked to conventional cross-chain conduits.
How it works
As a researcher delving into the fascinating world of blockchain technology, I’d like to explain what I mean by an “Atomic Swap.” Essentially, it’s a method for exchanging one cryptocurrency for another, residing on different blockchains, without requiring a third-party intermediary such as an exchange. The term “atomic” here signifies that the transaction is either completed entirely or not at all, mirroring the concept of atomic operations in computer science.
Fusion+ operates on the principle of “all-or-nothing,” implying that if any step in a transaction doesn’t meet the required conditions or is incompletely executed, the assets will be instantly returned to their original owners. Moreover, the transactions are managed by smart contracts, which act as impartial enforcers, guaranteeing that all terms of the swap, including time constraints and asset quantities, are fulfilled by both parties.
Initially, the swap process involves users disclosing their order specifics to intermediaries known as resolvers. These resolvers are skilled traders who strive to carry out swaps at optimal prices using a system called Dutch auction.
Afterward, the resolver securely binds the user’s tokens in a holding agreement (escrow contract) and transfers the equivalent value of another type of token into a different escrow contract, both contracts sharing the same secret hash and terms.
After both contracts become active on the blockchain, both parties disclose their cryptographic secrets, triggering a token swap and the user receiving the newly acquired asset. If any party doesn’t adhere to the predefined terms, the assets will be automatically returned to their original owners.
1inch first revealed their intention to unveil Fusion+ on September 12, highlighting concerns such as the security vulnerabilities associated with centralized cross-chain bridges, inadequacies in existing decentralized solutions, and the intricacy of present cross-chain procedures in a blog post.
In other developments, this year the DEX financed a platform for community-based testing, which facilitates the trial runs of web3 products during their beta phase.
Read More
Sorry. No data so far.
2024-09-18 13:46