Multichain Taprootized Atomic Swaps: Introducing Untraceability through Zero-Knowledge Proofs

Abstract

Taprootized Atomic Swaps is an extension for Atomic Swaps that enables the untraceability of transactions in a particular swap. Based on Schnorr signatures, Taproot technology, and zero-knowledge proofs, the taprootized atomic swaps hide swap transactions between regular payments. We propose several implementation options: single-transaction protocol, multiple-transaction protocol that splits the receiving amount in an untraceable way, and multichain swap protocol. Our proposed approach works with any smart-contract-compatible chain and multiple Taproot-compatible chains. We describe the concrete implementation of the protocol and release the source code publically.