What is a Token Swap?

A Token Swap refers to the process of converting one digital asset into another directly on a blockchain network. Executed through smart contracts, the entire transaction is recorded and verified on-chain without relying on centralized custodians.

Users can swap assets within the same blockchain or perform cross-chain swaps across different blockchains using interoperability technologies. Compared to traditional trading, token swaps offer:

• Decentralization: No third-party intermediaries; assets remain fully under user control.

• Instant Settlement: Once confirmed, the target asset is delivered directly to the user’s wallet.

• Transparency & Traceability: All transaction data is publicly recorded on-chain and can be verified anytime.

Token swaps are one of the most fundamental and widely used operations in blockchain, applicable to investment, payments, liquidity management, and cross-chain transfers.