Ping-Pong Swaps for Peer-to-Peer Cross-Chain Trading

Summary

Ping-Pong Swaps are a proposed method for exchanging tokens across blockchains directly between peers, without escrow or a trusted intermediary. The mechanism depends on each blockchain supporting unidirectional payment channels. The document presents this as a basis for anonymous, non-custodial exchange without centralized venues, bridge platforms, decentralized exchanges, or penalty-based multisignature escrow.

Proposed uses include peer-to-peer markets for token pairs, rebalancing Lightning Network channels, and wrapping tokens on smart-chain networks. Fiat exchange is described as a possible extension if banks add payment-channel functionality. The document outlines a protocol concept and potential applications, but gives no security analysis, implementation results, performance measurements, or evidence of adoption. Its practical feasibility therefore depends on the payment-channel capabilities and operational details of the participating systems.

Key ideas

• The protocol proposes direct cross-chain swaps using unidirectional payment channels on both chains.
• Its design aims to avoid escrow and trusted intermediaries.
• Potential uses include token exchange, Lightning channel rebalancing, and wrapping tokens on smart chains.
• Fiat swaps would require banks to support compatible payment-channel functionality.
• The brief description does not provide security proofs or empirical implementation evidence.

Tags

# Ping-Pong Swaps


# Ping-Pong Swaps









We propose Ping-Pong Swaps: A secure pure peer-to-peer crosschain swap mechanism of tokens or cryptocurrencies that does not require escrow nor an intermediate trusted third party. The only technical requirement is to be able to open unidirectional payment channels in both blockchain protocols. This allows anonymous cryptocurrency trading without the need of a centralized exchange, nor DEX's in DeFi platforms, nor multisignature escrow systems with penalties. Direct peer-to-peer crosschain swaps can be performed without a bridge platform. This enables the creation of non-custodial exchanges and also a global peer-to-peer market of pairs of tokens or cryptocurrencies. Ping-pong swaps with fiat currency is possible if banks incorporate simple payment channel functionalities. Some immediate applications are simple and fast rebalancing of Lightning Network channels, and wrapping tokens in smartchains.

Shown in full with attribution under the source's licence. Licence: abstract CC0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.