Published on: 2020-05-04T08:28:41+00:00
CoinSwap is a Bitcoin protocol that aims to improve privacy in transactions. However, there are limitations to the current approach of using CoinSwap with mixdepths. While mixdepths can protect against co-spending inputs, they may not be necessary for multi-transaction CoinSwaps where no coins are merged. If coins need to be merged, it is suggested that they should be in the same mixdepth.To address the issue of 1-input-1-output transactions being markers, a proposal is made to use a PayJoin construction for the second transaction. Additionally, Alice can spend her UTXOs in 2-output transactions and manipulate the change output detection heuristics to enhance privacy.The concept of private key turnover in CoinSwap is discussed, which involves turning over bilateral control to the swap partner after exchanging the swap secret. This allows for more flexibility and efficiency in the transaction process. Bob, the maker, can merge transactions without coordination with Alice and can fee bump using RBF instead of CPFP, reducing blockchain space usage.In terms of privacy, the conversation highlights the use of false positives in creating a large number of sets of transactions that add up to a certain value by chance, making it difficult for adversaries to identify the user's transactions. Standardized swap amounts are suggested to increase anonymity sets, and the distribution of output values on the blockchain is considered as a factor in achieving privacy.Overall, CoinSwap is seen as a promising method for improving privacy in Bitcoin transactions. However, there are ongoing discussions and proposals to further enhance its effectiveness and address potential limitations.In another topic of discussion, a protocol for traceless atomic swaps within the same chain is mentioned. This protocol involves using a suitably chosen schnorr signature instead of the secret 't' typically used in atomic swaps. The protocol enables parties to exchange funds without revealing their transaction histories.To perform the atomic swap, Alice and Bob provide each other with public keys and create P2PKH addresses where the funds will eventually be sent. They exchange time-locked refund transactions for the funding transactions, and adaptor signatures are used to validate the spending from these addresses. Steps are taken to ensure that the funds cannot be separated or claimed prematurely, while maintaining plausible deniability as the joint private keys are not accessible.The email suggests reaching out to experts in privacy tech for further insights and mentions specific individuals such as belcher, waxwing, and nopara73. Feedback is encouraged, and the author emphasizes the need for consultation with experts to gather more information on these topics.
Updated on: 2023-08-02T02:05:31.929016+00:00