▫️Why It Works

Houdini Swap's transactional privacy is achieved through the innovative use of a randomly selected Layer 1 acting as a middle layer between two exchanges. This approach ensures enhanced privacy by obfuscating the entire transaction path, preventing any single external party from identifying originating and destination wallets and reinforcing the security and confidentiality of Houdini Swap’s transactions.

Highly Effective Mechanics

  • Record Segregation: Exchange 1 handles the receiving side of the transaction, recording the intake and conversion of tokens into a randomized Layer 1 coin. Exchange 2, on the other hand, manages the sending side, converting the randomized Layer 1 coin into the receiver's specified token and dispatching it. This separation of roles ensures that each exchange only has partial knowledge of the transaction.

  • Layer 1 as Privacy Intermediary: The randoimized Layer 1 coin acts as a crucial intermediary layer, disconnecting the sender's original tokens from the receiver’s final tokens. This breaks any direct link between the two parties involved in the transaction.

  • Anonymity in Transaction Flow: Neither exchange nor any outside observer, has the complete picture of the transaction. Each exchange is aware of only one end of the process, maintaining the anonymity of the transaction flow.

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