New ways of trading are injecting some excitement into the cryptocurrency markets this week – notably, reporting today focuses on a move by SovereignWallet, a mobile crypto currency wallet system to unveil M-DEX, a new tool for trading.
SovereignWallet describes MDEX as a “free custody mobile exchange platform” with fixed rates, and notes that it uses something called ‘atomic swap technology.’
If you’re not familiar with what atomic swap is, a better understanding can better inform your cryptocurrency portfolio.
Essentially, atomic swap helps traders and parties to a transaction to do effective and efficient trades, without going through centralized exchanges.
Experts describe this as a system that accommodates trades without trust needed, because there’s a solid protection against defaulting by one party or the other.
A cryptographically powered smart contract with atomic swap features is binary – either it will happen or it won’t. Unlike new revolutionary advances in quantum physics, the atomic swap is notable for its on/off toggle – it’s called “atomic” because the entire deal is a united whole, and that gives parties the peace of mind they need to trade over the counter or off of an exchange.
Proponents of atomic swap technologies can point to prior trades like a massive operation shifting 1000 Bitcoin into 50,000 Litecoin with no escrow and no middleman.
The benefits of atomic swap trading are obvious – much like a more efficient currency trading system, these systems will advance the versatility of trading items like Bitcoin in a global market that’s growing and expanding.
However, not everybody believes atomic swap technologies like SovereignWallet’s M-DEX are ready for prime time – for instance, atomic swaps currently must have the same hash algorithms involved in both sides of the exchange, and have time lock contracts in place on both sides.
SovereignWallet leaders are promoting M-DEX by explaining that users will hold private keys in order to directly trade coin. An MUI trading bot will help facilitate these deals and the entire infrastructure will be online early next year.
Fans of the SovereignWallet platform, backed by the company’s MUI token, will want to look closely at the M-DEX platform and what it offers to the market – at the same time, it’s possible to take the general idea of atomic swaps and think about how that’s going to lead markets over time.
In unrelated news, we’ve had robust climbs in Bitcoin USD prices today – after a big start up to $6,450, the value declined, but is now climbing again above $6,430 as of press time. That represents a move back to around the five day average and above Bitcoin slump values that happened between October 11 and 15.
For many investors, cryptocurrency is a long game – while checking out today’s chart values, also check out the innovations that are happening around coin trading with firms like SovereignWallet moving in and facilitating bigger markets that could gel crypto currency gains in the long run.