▪️Why It Works

Houdini Swap's transactional privacy is achieved through the innovative use of a privacy coin as a middle layer between two exchanges. This approach ensures enhanced privacy by preventing any single party from viewing the entire transaction path, reinforcing the security and confidentiality of Houdini Swap’s transactions.

This method is highly effective for several reasons:

Record Segregation

Exchange 1 handles the receiving side of the transaction, recording the intake and conversion of tokens into a privacy coin. Exchange 2, on the other hand, manages the sending side, converting the privacy 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.

Privacy Coin Intermediary

The privacy 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.