Atomic Swap on Bitcoin SV

Token Sale Contract

We develop a token sale contract which trades bitcoins for layer 1 tokens without the risk of one party defaulting. Anyone can purchase tokens by sending bitcoin payments to the contract and is guaranteed to get tokens at predefined price automatically, enforced at the consensus layer. It is built atop our technology of maintaining state and layer 1 tokens in Bitcoin smart contracts. The full contract is shown below with comments inline.

TokenSale Contract

Extensions

We only demonstrate the basics of atomic swaps. There are many ways to extend it to be more practical and powerful. Some examples are:

  • swap bitcoins for layer 2 tokens; layer 1 tokens for layer 2 tokens; one layer 1/2 token for another layer 1/2 token
  • add another public function for the issuer(s) to redeem the funds in the contract
  • vary token price based on purchase time and setup token release time, by obtaining time using techniques in contract CheckLockTimeVerify
  • merge token records if same buyer purchases multiple times

Advantages

There are several salient features distinguishing this approach from existing atomic swaps.

  • It is non-interactive. It requires no back and forth communication or cooperation between involved parties. Thus many issues caused by one party becoming unresponsive are completely avoided.
  • It does not require timelocks and thus does not lockup funds.

Update (05/27/2020)

Bill from BitShizzle has improved the basic TokenSale contract and demonstrated it on the live bitcoin network, where five consecutive token purchases are made¹ at the price of 1000 satoshis/token: purchase 1 token, purchase 3 tokens, purchase 5 tokens , purchase 7 tokens, purchase 9 tokens. Eventually, the contract is paid 25000 satoshis and the token table is updated correctly as follows:

Token table after 5 sales

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sCrypt

sCrypt

sCrypt (https://scrypt.io) is a company with a mission to provide integrated on-chain smart contracting solutions on Bitcoin SV