Twilight
  • Twilight
  • What is a Twilight Pool?
  • Architecture
  • Validators
    • Testnet Usage Estimates
  • 🪃Boomerang
    • Abstract
    • Motivation
    • Design Properties
    • What is a Bitcoin Fragment?
    • Bitcoin Fragment Address
    • Bitcoin Fragment Sweep
    • Clearing
    • Refund Snapshot
    • Deposit Satoshi Test
      • Why Satoshi Test?
      • Deposit Confirmation
    • Withdrawal
    • Inscription Estimates
  • 🕒Validity Gadget
    • Abstract
    • Motivation
    • Design Properties
    • Chaintip Attestation
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  1. Boomerang
  2. Deposit Satoshi Test

Why Satoshi Test?

Centralized exchanges create a new bitcoin address for every new account. They leave the funds in the address till they have to sweep them to a cold storage. This is usually a planned UTXO consolidation and can be achieved easily if the liveness of the keys can be guaranteed.

However, in a distributed system, there's no guarantee that the address over which the deposit is received will still be live to sweep to a new consolidated reserve address.

In order to bypass this problem, we let the client deposit in the main reserve direcly, by first letting the protocol know from which address it should expect the deposit.

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Last updated 1 year ago

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