A Run Through on Swap Testnet Ether for Real Bitcoin

Of late, we have witnessed atomic swaps on the lightning network between a non-native asset, yes, we meant the lightning network's first ERC-20 to bitcoin atomic swap that took place. CoBloX, a TenX research and development lab, has been responsible for the accomplishment, where TenX’s PAY token gets swapped with a native asset, bitcoin.

Amid all cryptocurrencies’ spark of bearish pressure, pricing disparities at different exchanges offers luring advanced trading opportunities to exploit, such as, swapping, arbitrage. As the potential yields may vary not only from exchange to exchange, but also from Bitcoin to its peer group.

We run you through a swapping option from ETH to Bitcoin in this write-up which is clearly explained by liquality, well, the contributors to Liquality have begun with the Swap Challenge, where 100 participants will each be able to trustlessly swap their testnet ETH for $10 worth of BTC (minus mining fees). This seems to be an impressive methodology of incentivizing product usage as rewards are programmatically claimed through the successful completion of the swaps themselves, where no middlemen, no fees, no trust, and no third-party validation is needed.

In order to execute, they explained phases involved in this process:

The very first step being the swap challenge and initiate an atomic cross-chain swap with the following parameters:

  • 0.1 testnet ether (make sure your MetaMask wallet is on the Rinkeby network) for 0.00125 bitcoins (the application will automatically use one of your legacy Bitcoin addresses; you can verify this to be the case if the interface shows an address with the prefix "1". SegWit support coming soon)
  • The rate on the interface should state 1 ETH = 0.0125 BTC
  • Connect your MetaMask (Rinkeby) and Ledger (mainnet legacy bitcoin) wallets
  • Reach out to contributors using the Crisp chatbox on the lower right corner of the interface for the counterparty addresses

Initiate the atomic cross-chain swap by clicking "Next". This step will prompt MetaMask to transfer your testnet ETH into an escrow, requiring your signature and transaction via MetaMask. Then, copy the counterparty swap link, open up the chatbox on the lower right of your screen, and paste the link into the chatbox.

Currency Strength Index: FxWirePro's hourly BTC is flashing at 158 (bullish), hourly USD spot index is flashing at -21 levels (which is mildly bearish), while articulating at (14:02 GMT). 

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