A Quick Guide to Understanding Cross Chain Swap

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What is a Cross-Chain Swap?

Cross-chain swaps are a type of transaction that allows users to exchange tokens between two different blockchains. This is done without the need for a centralized intermediary, such as a cryptocurrency centralized exchange.

In the blockchain app development space, cross-chain swaps are important because they allow users to interact with different blockchains and their respective applications without having to bridge them manually. This makes it easier for users to access the benefits of different blockchains, such as their unique features and tokenized assets.

There are a number of different ways to perform a cross-chain swap. The most common method is to use a cross-chain bridge. A cross-chain bridge is a protocol that allows users to lock their tokens on one blockchain and receive an equivalent amount of wrapped tokens on another blockchain. Once the user has wrapped their tokens, they can then swap them for any other token that is supported by the bridge.

Another way to perform a cross-chain swap is to use a decentralized exchange (DEX). A DEX is a peer-to-peer exchange that allows users to trade tokens without the need for a central authority. DEXs typically support a wide range of tokens, including wrapped tokens from other blockchains.

To perform a cross-chain swap on a DEX, users will typically need to create an account and deposit their tokens into a wallet. Once their tokens have been deposited, users can then create a swap order to exchange their tokens for any other token that is supported by the DEX.

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How to Perform a Live Cross-Chain Swap on a DEX

To perform a live cross-chain swap on a DEX, you will need to follow these steps:

• Choose a DEX that supports the cross chain and tokens you want to swap
• Create an account on the DEX and deposit your tokens into a DEX wallet
• Create a swap order to exchange your tokens for the other tokens you want
• Wait for your swap order transaction to be completed
   

Example:

So, you've got some Ethereum and you want to switch it up for something on the Polygon network. Cool! First things first, you need to find a place that can handle this kind of swap. Think of it like choosing the right store to exchange your currency when you travel. One of the go-to spots for this kind of cross-chain swap is SushiSwap.

Now, let's go with SushiSwap. To do anything here, you'll need to connect your web3 wallet. It's as simple as clicking the button available in the top-right corner.

Once you're all connected, Picture this like picking the right currency and amount you want to exchange. You'll choose your source (Ethereum) and your destination (Polygon), then select the specific asset you're trading, and pop in the amount you want to swap. Just like doing a simple swap on any DEX.

Once blockchain and Cryptocurrency and amount is selected click on confirm, you will be asked to approve BentoBox on your web3 wallet, if already approved you will be moved to the next step directly, you will need to execute a one-time transaction (per contract) giving BentoBox permission to move your funds around.

Once BentoBox receives approval, simply click the Confirm Swap button, and your task is complete! just like that. Allow some time for the transaction to finalize on both the source and destination chains (the duration may fluctuate based on the specific chains involved), and before you know it, your assets will appear on your chosen destination chain within a matter of minutes - an estimated processing time will be displayed for your convenience.

Conclusion

To perform a cross-chain swap, users can use a cross-chain bridge or a decentralized exchange (DEX). DEXs typically offer a wider range of tokens and lower fees than cross-chain bridges.

When performing a cross-chain swap on a DEX, it is important to choose a reputable DEX and to check the slippage tolerance before placing a swap order. For more information related to cross-chain technology in the blockchain development space, connect with our blockchain developers.