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Quiz
When central banks of various countries createCBDCs based on cryptographic, the cryptocurrency ecosystem can transform CBDCsinto stable coin for use. This is possible due to atomic swap technology. Toexplain this simply, you can imagine gold bars and bundles of dollars aretraded offline. Since both parties have acquired their assets illegally andcannot trust each other as they are criminals, they want to conduct thetransaction without meeting face to face. Please explain this process indetail, assuming that even without mutual trust, the gold bars and dollars canbe successfully exchanged.
When central banks of various countries createCBDCs based on cryptographic, the cryptocurrency ecosystem can transform CBDCsinto stable coin for use. This is possible due to atomic swap technology. Toexplain this simply, you can imagine gold bars and bundles of dollars aretraded offline. Since both parties have acquired their assets illegally andcannot trust each other as they are criminals, they want to conduct thetransaction without meeting face to face. Please explain this process indetail, assuming that even without mutual trust, the gold bars and dollars canbe successfully exchanged.
Let's assume that A hasgold bars and B has a bundle of dollars. They can exchange without meeting andwithout trust. Imagine special safes installed at the locations of A and B.Cameras are set up inside and outside the safes. The one inside is always on,and the outside one can be turned on or off. First, A puts the gold bars into his/hersafe, sets a combination, and sends the hash value of this combination to B.Once the combination is set, the outside camera turns on and automaticallyreveals the hash value. Then, B places the bundle of dollars into his/her safeand enters the hash value of the gold safe first, then enters his/her owncombination to lock the dollar safe. Now, they switch places, A stands in frontof the dollar safe, and B in front of the gold safe, with all outside camerasturned on. When A enters the combination on the dollar safe, B sees thiscombination directly through the camera, thereby learning the secret key of thegold safe. However, to prevent B from running away with the gold before A canaccess the bundle of dollars, the gold safe is designed not to open until Aopens the dollar safe. B must corporate with A to take the dollars in order totake the gold, so B delivers his/her combination to A. After A opens and takesthe dollars from the dollar safe, B can then open the gold safe and take thegold.