Atomic Swap

It is the exchange of cryptocurrencies between chains carried out in a peer-to-peer (P2P) manner using an HTLC or Time-Limited Hash Contract, it is nothing more than a smart contract that manages a payment channel.

Smart contracts eliminate the need for a third party, such as a centralized exchange, enabling decentralized trading of cryptoassets across chains. Let's see:

✅ The smart contract creates a virtual vault for exchange.

✅ The first part sends your cryptocurrency to a contract address locked within the vault.

✅ The second party confirms the deposit and sends your cryptocurrency to another contract address locked within the vault.

✅ The smart contract confirms that both parties have locked their respective amounts.

✅ Upon confirmation, funds are released to the parties.

Boltz uses atomic swap, it allows you to go from LN to OnChain and vice versa, even Liquid (LBTC)