Hiding CoinSwap Makers Among Custodial Services



Summary:

In a recent post on the bitcoin-dev mailing list, ZmnSCPxj proposed a method to improve the privacy of customers using SwapMarket. The proposal suggests having the maker operate in rounds, enabling it to service multiple clients with a single transaction by batching. In each round, makers can swap coins with multiple takers and combine them into a single transaction. The batched transaction looks like a custodial service might produce, which would help mitigate the blockchain size issues that CoinSwap has. Although this method spreads taint around and increases the effort that chain analysis must go through to identify what really happened, makers are incentivized to adopt this technique as it reduces the overall cost of transactions they produce, thus increasing their profitability.


Updated on: 2023-06-14T02:27:38.450193+00:00