Quote from: 12Satoski on May 02, 2024, 10:02:36 PM

Quote from: MimiPaps on May 02, 2024, 09:53:33 PM

Quote from: Talithy on April 29, 2024, 08:37:54 AM

How does Swaps.org handle the privacy and security of secret hashes (i.e., pre-images) in atomic swap processes, particularly when dealing with sensitive data or privacy-focused cryptocurrencies?

Hmm. seeing this makes me wonder if Hashed Time-Locked Contracts or Point Time-Locked Contracts (adaptor signatures) are the tech in play here.

Not really my field, But i think PTLCs would be the way. It is better than HTLC when it comes to privacy, and is kinda more flexible. We have seen it work well on lightning Network. Hopefully, this works out too. This would make for a good discuss. Probably someone more informed can put me through (Wouldn't be bad to learn something new Grin

)

You're right about the potential benefits of Point Time-Locked Contracts (PTLCs) over Hashed Time-Locked Contracts (HTLCs) when it comes to preserving privacy in atomic swaps. Using adaptor signatures in the PTLC setup can help keep the pre-images (secret hashes) private until they're needed. If Swaps.org is using PTLCs for its atomic swap processes, it could provide greater assurance of privacy for users and their sensitive data.

*Point Time-Locked Contracts:* PTLCs are an evolution of HTLCs that allow for the same atomic swap functionality, but without the need to reveal the pre-image until the contract is actually settled. This means that if the contract is not settled, the pre-image remains private, which can help to protect sensitive information.

*Adaptor Signatures:* Adaptor signatures are an important component of PTLCs, as they allow one party to commit to a specific pre-image without revealing it to the other party. This means that the pre-image can be kept secret until the contract is settled, which improves privacy and security.

*Privacy-Focused Cryptocurrencies:* PTLCs could potentially be used to support atomic swaps between privacy-focused cryptocurrencies, such as Monero or Zcash, which use techniques like ring signatures and zero-knowledge proofs to maintain privacy. This could help to preserve the anonymity of users and their transactions even when using atomic swaps.