Computer-implemented systems and methods for atomic swaps

Glossary

Term definitionsAtomic SwapA cryptocurrency transaction in which two different cryptocurrencies are exchanged directly without a trusted third party.BlockchainA distributed database containing transaction data recorded in chronological order and linked and protected by cryptographic methods.HashA one-way function that converts data of arbitrary length into a fixed-length string.Secret ValueA secret information held by the user to unlock the output of a transaction.Public KeyA key derived from the private key that can be shared publicly and used to verify the signature of a transaction.Private KeyA key held secretly by the user and used to sign a transaction.Derived Public KeyA public key calculated from the original public key and specific information (such as a secret value).Veiled Secret ValueA value obtained by applying a one-way function (such as a hash function) to a secret value, used to protect the confidentiality of the secret value. Locking Script is a script embedded in a transaction output that specifies the conditions required to unlock that output. Unlocking Script is a script embedded in a transaction input that provides the data required to unlock the corresponding output. Timelock is a mechanism that restricts transactions to take effect before a certain time. Short Answer Questions

What are the advantages of atomic swaps? Atomic swaps allow cryptocurrencies to be exchanged securely without a trusted third party, eliminating the need for centralized exchanges and reducing counterparty risk.

What is the relationship between secret values and masked secret values? The secret value is the original information used to unlock the transaction, while the masked secret value is the value obtained after applying a one-way function (such as a hash) to it. The original secret value cannot be derived from the masked secret value, but the masked secret value can be calculated from the secret value.

What role do locking scripts and unlocking scripts play in atomic swaps? The locking script specifies the conditions for unlocking the transaction output, which usually includes providing the correct secret value. The unlocking script provides data that satisfies the conditions of the locking script, including the secret value itself.

What is the use of timelocks in atomic swaps? Time locks can set a time limit, and if the exchange is not completed within the specified time, the transaction will be canceled and the funds will be returned to the sender. This reduces counterparty risk and prevents one party from losing its assets without receiving the other party's assets.

How to use derived public keys to enhance the security of atomic swaps? Derived public keys are generated based on the user's original public key and information related to a specific atomic swap. Using derived public keys can bind transactions to specific atomic swaps and prevent key reuse attacks.

What are the advantages of using shared secret values in atomic swaps? Shared secret values can further enhance privacy. By combining a secret value with a shared secret value, only the two parties to the transaction know the original secret value even if the transaction is made public on the blockchain.

How to use hash chains to optimize repeated atomic swaps? Hash chains can pre-compute a series of hash values, each of which represents a secret value. In each atomic swap, only the next hash value needs to be disclosed, without the need to transmit the entire secret value each time, thus saving storage space and communication costs.

How to determine the common secret used in atomic swaps? The two parties can use elliptic curve cryptography to calculate the common secret based on their respective private keys and a shared generated value. Since the calculation of the common secret does not rely on the transmission of private keys over an insecure network, security can be ensured.

What blockchain platforms can the atomic swap method be applied to? The atomic swap method can be applied to any blockchain platform that allows the use of lock and unlock scripts, such as Bitcoin, Ethereum, and Dash.

In addition to cryptocurrency exchanges, what other scenarios can atomic swaps be used for? Atomic swaps can also be used for distributed hash table access control, encrypted computing, private email clients, logistics data exchange, goods and services exchange, private exchange of value, and key hierarchy management.