Exploring the Coinswap Protocol: A New Approach to Atomic Swaps

I just found this Coinswap app and wanted to share it with you guys. Couldn't find a suitable topic before, so here we are. It has features like customizing swaps, shredding old transaction history, and more. Pretty interesting stuff.

Looks cool but kinda hard to grasp how it really works. Also, their licensing seems quite unique. I've seen projects allow you to pick between open source and proprietary, but this one is on another level.

It's a fresh take with Hashlock, Timelock, and MuSig2 contracts. The hop mechanism is a bit complex, with communication through Taker > Maker0 > Maker1 > Taker. But you gotta run a full Bitcoin node to participate, which is a big ask for most traders.

Checked out the github link and the use cases. Everything seems privacy-focused, but I'm skeptical about some claims. Shredding old transaction history sounds like marketing fluff. In reality, you can't erase Bitcoin’s history; you can just obfuscate it. Plus, the decoupling of sender and receiver history sounds cool if they get eCash interoperability right.

Nothing groundbreaking here. Citadel’s just putting Gregory Maxwell's 2013 idea into practice using Taproot contracts. Their tools seem more for testing than actual use, built to run on Mutinynet.

That's an interesting angle. Sounds like a push to get more nodes out there, which is good for the network, but yeah, many users are just not tech-savvy or motivated enough.

Agreed, the real hassle is having to set up the terminal to run the app. I get the basics, but the complexity ramps up, especially since it’s multi-chain. If one chain doesn’t support Taproot, does it just drop back to V1? And how do fidelity bonds really stop Sybil attacks?

Did you mean multisig instead of multi-chain? If the other party doesn't support Taproot, the whole process just fails during contract setup. Honestly, I’m not keen to dive deep into Citadel's chainswap until it’s more mainstream, if that even happens.

Not exactly, their site uses "cross-chain" not multi-chain. If they’re locked to V2, I’d be more worried. But like you, I’m not in a rush to investigate further.

Seriously, eCash interoperability sounds like a joke. Why would a self-custodial swap need to work with custodial systems?

Maybe it's about enhancing privacy? I don’t mind if they’ve figured out trust on their end. It’s similar to how mixers operate with CEXs.

Honestly, if it’s just between Apache 2.0 and MIT licenses, then things become easier legally. Just stick to Apache since it covers the MIT too. If everything is open-source, then no worries.