Atomic Swap Order Matching

Atomic Swap Order Matching is the process of connecting two parties who wish to exchange assets across different chains using atomic swap technology. Unlike centralized exchanges that use order books, atomic swap matching often occurs through decentralized bulletin boards or peer-to-peer discovery protocols.

The matching process must ensure that both parties have the necessary assets and are willing to accept the proposed terms, including the exchange rate and the time-lock duration. Because there is no central clearinghouse, the matching engine does not hold funds, but it must facilitate the communication required to initiate the contract.

Efficient matching is essential for liquidity and reducing the time spent searching for a counterparty. This is a complex problem in behavioral game theory, as participants may attempt to manipulate the terms of the trade.