⁉️How Its Work?

1. Participants:

• User A holds assets on blockchain A (e.g., Bitcoin).

• User B holds assets on blockchain B (e.g., Ethereum).

2. Locking Assets:

• User A locks their asset (Bitcoin) in a smart contract on blockchain A using a Hash Time-Locked Contract (HTLC).

• User B locks their asset (Ethereum) in an HTLC on blockchain B.

• Both use the same hash to lock the contracts, ensuring the assets are only released when the conditions match.

3. Verification and Swap:

• Shiftd AI acts as a relay, facilitating communication between the two blockchains but does not hold or control the assets. Its role is to verify the HTLC conditions.

• Both users exchange the hash keys needed to unlock the HTLCs on their respective blockchains.

4. Asset Release:

• Once the hash verification is complete, the smart contracts on both blockchains release the locked assets.

• User A receives Ethereum from blockchain B, and User B receives Bitcoin from blockchain A.

5. Return of Assets (If Conditions Fail):

• If one party fails to provide the correct hash key within the agreed time frame, the transaction is automatically canceled.

• The assets locked in the HTLC will be returned to their original owners, ensuring no asset loss in case of failure.

6. Benefits of Shiftd AI:

• Security: The process eliminates third-party custodianship, reducing the risk of hacking or fraud.

• Decentralization: Assets are directly exchanged between blockchains without the need for centralized exchanges.

• Speed: Shiftd AI automates the verification, ensuring the process is swift and secure.