First ERC-20 to Bitcoin Atomic Swap Finally Happens on the Lightning Network
The first atomic swap between a non-native ERC-20 token and Bitcoin (BTC) took place on the Lightning network during a TenX Summit a week ago on December 7th.
The team, later on, went with publishing their own report regarding the first demo of the mentioned atomic swap, releasing the details on the demo via Medium post, to intercept the “gossip factory” as team describes FOMO-ers and FUD-ers.
The fact that this is the first time in the history of the blockchain and cryptocurrency industry that the Lightning Network allowed for a live demo of an ERC-20 to Bitcoin atomic swap, makes this event even more significant.
The swap took place between TenX PAY token, based on Ethereum platform and Bitcoin (BTC), and was marked as successful and explained in detail in the Medium post published back on December 12th.
TenX research lab focused on the overall development of the project named CoBlox is the entity responsible for the announced atomic swap.
CoBlox Research and Development Lab Enables First ERC-20 to Bitcoin Atomic Swap
CoBlox, the research lab for development under the TenX foundation, was actually responsible for the first successful atomic swap between Bitcoin and TenX PAY token, which is an ERC-20 type.
The demo turned out to be quite a success, however, the team behind CoBlox stated in the mentioned Medium post that the swap wasn’t as smooth as the previous attempt of swapping Ether (ETH) and Bitcoin (BTC) on the lightning network.
As the team explained, the atomic swap between ETH and BTC required only a single smart contract through HTLC in order to complete the swap, where PAY token requested additional steps.
The team managed to complete the first ERC-20 to BTC swap by adding another smart contract to the function. This is the case since PAY token requires HTLC that should be divided into two different transactions.
In that case, one transaction was designed to deploy the smart contract that conditioned the atomic swap and the other transaction represented transfer call.
However, the team couldn’t figure out how to make the swap go both ways.
The Lightning Network for the Atomic Swap Also Has its “Quirks”
As the team representatives from the CoBlox lab explained in the post published on December 12th on Medium, using the Lightning Network for the atomic swap also has its own quirks.
The team states that there is not a single implementation that would allow them to have a direct access to the HTLCs.
As the team completed two swaps, first testing ETH to BTC swap then exchanging 10 PAY tokens for 71240 Satoshi, it is stated that during the implementation of the Proof of Concept protocol, the team encountered some challenges that need to be further addressed and solved for the future utilization of COMIT.
The swap was actually conducted through COMIT, which is an open-source software with a great focus ion bringing interoperability to the blockchain ecosystem, acting as a medium between cross-chain payments, that way enabling atomic swaps.
The described demo was only an introduction into what the team behind COMIT will be able to do once additional cryptocurrencies and features are added to the open-source software.
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