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0 sats \ 4 replies \ @SwapMarket 1 Feb \ on: Addressing compliance confusion wrt Tether and Taproot Assets bitcoin
You said "Tether doesn’t support anything they can’t unilaterally freeze funds on". How can they do it on Liquid with all the transactions confidential?
As I understand it, they can't freeze funds on Liquid. Regulated assets with centralized control on Liquid are released as "AMP" assets, and Tether was not release as one of those. Between that, and confidential transactions, it is possible to track transfer of value through addresses between peg-in and peg-out, but you can't see which asset or how much of it are transferred.
USDT on Liquid is not subject to centralized control, but it's not completely untraceable via all heuristics.
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Exactly my point. But I think it can be completely untraceable given that a UTXO can confidentially hold BTC or USDT, and people can discretely swap BTC back and forth to LN. By the time some USDT amount shows up at a KYC exchange its history can be totally obfuscated.
One can also privately trade BTC/USDT via our non-KYC exchange.
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You mean Boltz swaps backend? It sees nothing identifiable, no IP addresses etc. The frontend does not send such info to the backend, you can check the code. And you can host your own frontend or use ours transparently hosted by GitHub Pages.
Our BTC/USDT swaps are done by the web app. It is a static page that cannot save anything, and you can also audit the code to see that it does not. It gets private keys to the backend wallet when it loads. The wallet will of course keep the history of the transactions, but as well nothing identifiable. It can unblind only incoming confidential assets and amounts, but not outgoing.
And to hide your IP from API backends you can run a VPN or Tor.
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