bitcoin-dev

Design for a CoinSwap implementation for massively improving Bitcoin privacy and fungibility

Design for a CoinSwap implementation for massively improving Bitcoin privacy and fungibility

Original Postby ZmnSCPxj

Posted on: May 31, 2020 02:30 UTC

The author discusses using 2-party ECDSA to create 2-of-2 multisignature addresses that look the same as regular single-signature addresses, which doesn't require multisig for one of the two outputs.

They suggest using MuSig key-combination protocol for the non-timelocked SAS output, but the other output still has to be a 2-of-2. The author also discusses PayJoin-with-CoinSwap and its effectiveness in adding privacy. They conclude that PayJoin-with-CoinSwap adds only limited privacy and is not very different from a standard CoinSwap. Finally, the author explores whether SAS can be done with more than two parties but hasn't figured out if it's possible yet.