• Commerceblock introduced Mercury Wallet, which introduced a new mixing tool and statechains and CoinSwaps as a second-layer scaling solution.
• Statechains are an off-chain mechanism for transferring funds freely between users.
• CoinSwaps allow users to mix multiple times without needing to transact on chain for each mix.
Commerceblock has released a revolutionary new wallet that implements both statechains and CoinSwaps. Dubbed the Mercury Wallet, it is the first of its kind to include a new second-layer scaling solution.
Statechains are an innovative off-chain mechanism for transferring funds freely between users. They work by having the original user collaborate with a statechain operator to construct an address where the private key is split between both parties. Then, a timelocked pre-signed withdrawal transaction is created and signed, with the operator sending funds to the new address. Neither side fully controls the private key, and the user has a pre-signed transaction that allows them to unilaterally take the coins back after the timelock.
When the user wishes to transfer the statechain, they notify the operator who then collaborates with the receiver. The receiver and operator generate a new set of private key shares that correspond with the same address, and generate a new pre-signed transaction with a lower timelock than the last one, and then the operator deletes their old keyshare. The way the cryptography works, the operator’s new keyshare will only work with the new user’s keyshare, so if they delete the old one, it is not even possible for them to collaborate with the old user to spend the coins.
The Mercury Wallet also implements a new CoinSwap design. This allows users to mix multiple times without needing to transact on chain for each mix. The CoinSwap design works by having two users exchange coins without broadcasting the transaction to the blockchain, meaning that the coins are not traceable. This process is repeated multiple times, making it difficult to trace the original coins back to the sender.
Overall, the Mercury Wallet has revolutionized the way users can transfer funds and mix coins. It has introduced a new mixing tool as well as the first wallet to implement a new second-layer scaling solution. The team behind the wallet has built off of Ruben Somsen’s original statechain proposal and integrated a new CoinSwap design, allowing users to mix multiple times without needing to transact on chain for each mix. With the Mercury Wallet, users now have a secure and reliable way to transfer funds and mix coins, making it easier and safer for all.