# 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.

<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.transit.finance/start-to-use/quick-start-guide/what-is-a-token-swap.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.