Atomic swaps enable trustless and decentralized exchange between different cryptocurrencies, including Bitcoin, by allowing users to directly swap one cryptocurrency for another without the need for an intermediary or trusted third party. This is achieved through the use of smart contracts that ensure both parties involved in the exchange fulfill their part of the transaction simultaneously or the swap is canceled and no funds are exchanged. This process removes the need for users to deposit their funds on centralized exchanges, reducing the risk of hacking or fraud, and providing a more secure and efficient way to exchange cryptocurrencies.
