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@@ -19,11 +19,11 @@ A minor protocol change is proposed to enable Atomic Swap capability within the
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Atomic Swaps are a smart-contract technology that enable the exchange of one cryptocurrency for another without using intermediaries, such as 3rd party exchanges. Atomic swaps occur as events within the respective blockchains and between the exchanging parties only in a cryptographically secure manner. Atomic Swaps are a fundamental building block for implementation of decentralized exchanges, such as the planned Pascal DEX.
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-An Atomic Swap is performed using a type of smart-contract called a _Hash-Locked-Time-Contract_ (HLTC). The "Hash-Lock" aspect requires that the funds within the contract are locked by a hash and that they can only be unlocked by revealing the pre-image of that hash. The "Time-Contract" aspect refers to the contract being exclusively assigned to another party for a fixed, public and immutable period of time. This allows the party to unlock the funds within that time-frame without risk of being pre-empted by any other party.
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+An Atomic Swap is performed using a type of smart-contract called a _Hash-Locked-Time-Contract_ (HLTC). The "Hash-Lock" aspect requires that the funds within the contract be locked by a hash and that they can only be unlocked by revealing the pre-image of that hash. The "Time-Contract" aspect refers to the contract being exclusively assigned to another party for a fixed, public and immutable period of time. This enables the party to unlock the funds within this time-frame without risk of being pre-empted by any other party.
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By using two matching HLTC's on two independent blockchains, cryptographically-secure Atomic Swaps of cryptocurrency between those blockchains are possible without involving intermediaries. Since PascalCoin already implements "Time-Contracts" in the form of [in-protocol PASA exchange][2], only the "Hash-Locked" aspect of HLTCs require implementation.
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-The proposal here is to introduce "Hash Locked" accounts which, when used with in-protocol PASA exchanging, achieve a HLTC suitable for Atomic Swaps. With this simple change, the folloing cross-chain Atomic Swap workflow is possible:
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+The proposal here is to introduce "Hash Locked" accounts such that when used within an in-protocol PASA exchange, achieve an HLTC suitable for Atomic Swaps. With this simple change, the following cross-chain Atomic Swap workflow is possible:
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### Atomic Swap Workflow
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@@ -72,7 +72,7 @@ _The swap has still not occured yet but is setup bi-directionally._
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---
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-7. Once Alice detects **TXN1** on BTC chain, she immediately spends **TXN1** to her own wallet and takes possesion of the 1 BTC.
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+7. Once Alice detects **TXN1** on BTC chain, she immediately spends the outputs of **TXN1** to her own wallet and takes possesion of the 1 BTC. She does this with by publishing **TXN2** on BTC.
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----
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_**NOTE** In the process of spending TXN1, Alice reveals the SECRET inside TXN2, which was a necessary condition of the smart-contract defined in **TXN1**, in particular the ```x for H(x) = CODE``` portion._
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Herman Schoenfeld