Author: Karl 2020-09-21 22:18:44
Published on: 2020-09-21T22:18:44+00:00
A team is designing an off-chain coin-swap protocol that will work with the statechain implementation they are developing. The aim of the protocol is to enable users to transact peer-to-peer off-chain, mixing their coins with other users for greater privacy while remaining in full custody of their assets. The swapping service would not have control of the coins and would coordinate the swap amongst a group of statecoins. To ensure privacy, the conductor would use a blind signature scheme similar to the zerolink protocol. The challenge with this protocol lies in assigning blame in case of a failed multi-party coinswap, as it's not possible to determine whether the sender or receiver of a coin is malicious without revealing the encrypted value sent between them. One potential solution is to have each sender generate a zero-knowledge proof that the encrypted value sent to the receiver is correct/valid, which can be used to assign blame in a failure. However, this solution is not trivial to implement and would likely add significant computational burden to user wallets. The team welcomes comments and is willing to provide more details if anyone is interested.
Updated on: 2023-06-14T15:19:36.539354+00:00