160 sats \ 1 reply \ @anon 5 Dec 2023 \ on: I'm Kilian, Co-Founder of Boltz. AMA. bitcoin
Can you ELI5 how atomic swaps work? How are LNBTC transformed to onchain BTC? What is the difference to services like deezy.io? Regarding privacy and onchain footprints...can i use noncustodial swaps instead of coinjoins?
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224 sats \ 0 replies \ @boltz OP 5 Dec 2023
Sure, on a basicl level an atomic swap consists of two phases
  1. the set up phase: both parties, user and Boltz, lock up funds to be swapped. Usually one part on lightning and one part on the chain. Special crypto trick is: both payment are locked with the same key, the so-called "preimage that always the user has.
  2. Once that is done and both sides locked up funds, user unlocks the incoming payment from Boltz. This unlocking is "public" so Boltz gets to see the preimage and can use it to unlock its incoming payment.
Tada, we exchanged two payments non-custodially. For the more in-depth version and a demo you can watch https://youtu.be/ghtKBqA-5T0?t=353
For comparison with coinjoin, see my answer below: #339271
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