Since May 28th, the COMIT development team announced that it is now possible to trade between Bitcoin and Monero networks.
It is no secret that Monero is the most private blockchain in existence, it is known that multiple exchanges have stopped trading their currency because there is a high degree of privacy in it, reason why it is not pleasant for regulators. But with this big step that has been left behind and with this development it is possible to make exchanges between Bitcoin to Monero preserving privacy and without intermediaries.
For some time now the development team has been working on this project, which they thought was impossible to execute because it did not have the support of Hash and Time Locked Contracts (HTLC) in Monero.
Comit develops a protocol founded on adopter signatures, which are additional signatures that are linked to an initial signature and allow to reveal a secret data, i.e. it consists of both parties revealing a secret data at the same time, which solves a trust issue, consequently generating a simultaneous transaction.
For example:
John and Zoe partner to perform a transaction but both block their coins, then Zoe delivers to John an adpot signature with HTCL and the amount of BTC agreed to John. As this is not a transaction signature it cannot be spent yet, but gives a secret value commitment.
Later John creates his transaction and sends Zoe an adopter signature with the agreed amount of XRM, then John reveals his signature, by doing this, both parties can redeem their coins, but if something goes wrong during the transaction each one can recover their coins without any problem.
I show you a scheme where you can see a transaction based on atomic exchanges from Bitcoin to Monero.
Above: transaction scheme for Bitcoin.
**Below: **transaction scheme for Monero.
This system allows the asset to be released at the same time between both parties, once the exchange is completed.
INTERWORKING OF DIFFERENT BLOCKCHAINS
In this sense, an atomic exchange allows the exchange of coins between different blockchains, secure and without the need for intermediaries, but also respects the principles of bitcoin (anonymity, resistance to censorship) and brings us closer and closer to true decentralization.
The hasty advances in cryptography new protocols have been created to meet the needs of users.
COMIT: is an open protocol that facilitates cross-blockchain applications without the need to trust the counterparty or any intermediary.