Introducing Atomic Loans - Extends atomic swaps for cross-chain debt agreements

[mjablack]

Recently published paper on the idea of Atomic Loans. Essentially using the core concepts of Atomic Swaps (locking funds in an HTLC, and revealing secrets at certain points in time to unlock the funds) to enable the creation of cross-chain debt agreements, which functions by locking funds at different intervals in time, and revealing secrets that correspond to the stage in which the loan is in.

Paper: https://arxiv.org/abs/1901.05117

[1713943511]

1713943511

[1713943511]

1713943511

[1713943511]

1713943511

[mjablack]

Would love to hear any feedback on this paper from the community.

Use cases:

Enable individuals to put in Bitcoin as collateral and receive a stablecoin loan on Ethereum without any middlemen.
Decentralized and disintermediated margin trading for Bitcoin
Short Ethereum assets by creating a loan using Bitcoin as collateral, and an Ethereum asset such as ether or ico token

[Wind_FURY]

Would Atomic Loans be almost the same as this? https://garage.co.jp/en/pr/20190121_1_EN.pdf

[mjablack]

Would Atomic Loans be almost the same as this? https://garage.co.jp/en/pr/20190121_1_EN.pdf

I would say that Atomic Loans is quite a bit different from that paper. The assets described in the paper (JPY-Token) and (L-BTC) would exist on a Bitcoin sidechain. Atomic Loans work directly on the Bitcoin mainnet. Additionally, this paper is describing the Atomic Swapping of these assets (JPY-Token) and (L-BTC). Atomic Loans talks about the creation of debt agreements using the underlying technology of Atomic Swaps. Interesting to read though. My main concern would be Blockstream controlling the sidechain.