An atomic swap is when two cryptocurrencies can be traded amongst each other i.e. converted from one into another without the intervention of a third-party platform or exchange. They are made wallet to wallet in a fully person to person manner.

They are called atomic as it results in either successful completion of swap and each trader receives the other’s funds or nothing happens with both traders keeping their respective funds.

Tier Nolan who accomplished this in 2013 is widely considered as inventor of atomic swaps. The first atomic swap was established between Bitcoin and Litecoin.