ATOMIC SWAP VS MULTISIG

Cryptocurrencies are simply the "digital money" of the new world and these can be purchased through an exchange. But in order to purchase these various tokens, you'll need to be part of the exchange site via creating an account and once that is done, you can safely transact anytime anywhere on your personal wallet.
Today, there are several crypto exchanges with a common goal which is to help in the conversion of cryptocurrencies in to fiat money. And all these exchanges use either Atomic Swap or Multisignature to help make transactions fast and accurate.

WHAT ARE ATOMIC SWAPS?
These are automatic self-executing business agreements that allow peer-to-peer exchange of cryptocurrencies without a third-person interference. This introduction of this technology dated far back to 2017 when Charlie Lee (Creator of Litecoin) did a cross-chain substitution with LTC/BTC and auctioned 10 LTC (Litecoin units) for 0.1167 BTC. And since that happened, many exchange platforms as well as the traders are conveniently using this technology like it was nothing.

FEATURES:

• DECENTRALIZED NATURE:
  Cryptocurrency traders will need to support a decentralized economic world and still need to trade using centralized industries like Coinbase. By being autonomous of exchange sites allowing direct wallet-to-wallet agreement. Atomic swap assigns its users total control over their funds and exchanges.

• 100% SECURITY
  The two security features embedded in the Atomic Swap (I.e The HashLock and the TimeLock technologies) offer outstanding protection and certainty to traders and since the have the assurance of getting their currency back in the case of delays or disagreements and have total control over the transactions.

• MUTUAL TRADING AND REDUCED COSTS
  Atomic swap enables dealers to trade with each other independently, atomic swap also curtails the operational expenses and trading costs that are involved with using a centralized exchange.

DISADVANTAGES

• LESS CONVENIENT THAN A CENTRALIZED PLATFORM
  Regardless of the various disadvantages that are associated with centralized trading platforms, atomic swaps cannot exchange fiat currencies for cryptocurrencies making it less convenient as compared to the centralized trading platforms.

• PRIVACY ISSUES
  Atomic swaps tend to take a longer time in executing commands depending on the timeframe on the TimeLock. And as a result of this, the trade is functional on the blockchain network for a longer period, giving hackers more time to interrupt the process and gather private information about the traders involved

• SOPHISTICATED CONDITIONS
  Because of their higher security level, Atomic swap conditions are more complicated than those required by exchange platforms and they require parties to interact without means of direct communication.
  Other platforms may execute trades with the click of a button, whereas atomic swaps require the exchange of data and information, along with hashed cryptographically

WHAT IS MULTI SIGNATURE?
This is a particular type of digital signature that enables two or more stoners to sign documents as a group. Hence, it is simply the combination of numerous unique signatures made on a blockchain network that enables transactions to go smoothly, and WhalesHeaven a peer-to-peer platform uses this technology to make trading easier on the platform.

ATOMIC SWAP VS MULTISIG
On the Atomic swap definition, we observed that they make use of only one private key, making it easier for a hacker to easily access the funds because of the single ownership system making him able to sign transactions at will without authorization from any other party.

• Managing funds on the Atomic Swap is less stressful than Multisignature as your funds are protected on a single key making it an important target to the cybercriminals.
• Atomic swaps are not the best options to use as a business wallet for cryptocurrencies because funds of a company stored on a single private key would mean that the keys would not be given to anyone or rather given to everyone and this isn't the best way to safeguard the company's fund.

However, multisignature technology offers a potential solution to these problems.

• And unlike Atomic Swap, the funds on the multi-signature which the WhalesHeaven employs would require 2 or more private keys to be used in making the transactions.
• Some multi signatures require more keys than others 2-of-3 is the most common one, where only 2 signatures are sufficient to access the funds of a 3-signature address others may include 2-of-2, 3-of-3, 3-of-4, etc. according to how it was configured.

ADVANTAGES

• EXTENDED SECURITY
  WhalesHeaven employs the use of a multisig wallet on their platform preventing the detriments of losing a private key so that users can stillness their funds if one of the keys is lost to theft while on the part of the thief the funds on a multisig wallet cannot be accessed with one private key

• DECISION MAKING
  This solves the problem Associated with the Atomic Swap by setting up a 4-of-6 wallet where the unique private keys involved with a multisig wallet are distributed amongst the highest trusted members in a company so that transactions can only be made with the presence of these consenting individuals.

DISADVANTAGES
Although a multisig wallet solves a number of problems, it also has disadvantages like:

• TECHNICALITY
  Multisig wallet is relatively difficult to set up and in order to do that you need guidance but when you don't need the involvement of a third person that becomes a problem.

• NON-CUSTODIAL
  When a wallet is created with multiple keyholders and a flaw comes up it may be difficult to get legal support as there is no manager involved in a multisig wallet.

LAST WORDS
Irrespective of these disadvantages, WhalesHeaven continually works to make a multisig wallet on their platform more beneficial and appealing for business. And by employing more than one signature to transfer funds, multisig wallets produce reinforced safety of funds and allow trustees escrow transactions.