Atomic Swap
A peer-to-peer exchange of cryptocurrencies between different blockchains without requiring a trusted intermediary or centralized exchange. Atomic swaps use hash time-locked contracts (HTLCs) to ensure that either both parties receive their assets or neither does — the swap is 'atomic' because it cannot partially complete.
“Using an atomic swap, you could trade Bitcoin directly for Litecoin with another person without either party trusting the other or using an exchange.”
Cross-Chain
Referring to the ability to transfer assets, data, or messages between different blockchain networks. Cross-chain technology is essential for blockchain interoperability, allowing ecosystems like Ethereum, Solana, and Cosmos to communicate. Solutions include bridges, relay chains, and messaging protocols like Wormhole and LayerZero.
Smart Contract
Self-executing programs stored on a blockchain that automatically enforce the terms of an agreement when predetermined conditions are met. Smart contracts enable trustless transactions without intermediaries because the code, once deployed, executes exactly as written and cannot be altered (unless specifically designed to be upgradeable). They form the foundation of DeFi, NFTs, DAOs, and virtually all dApps.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates without a central authority, using smart contracts to enable peer-to-peer trading directly from users' wallets. DEXs never take custody of user funds. Most DEXs use automated market maker (AMM) models with liquidity pools, though some use on-chain order books.