• Commerceblock introduced their Mercury Wallet, which featured both statechains and CoinSwaps. This allowed users to mix multiple times without needing to transact on chain for each mix.
• Statechains are an off-chain mechanism for transferring freely between anyone completely off-chain. The original owner/user collaborates with a statechain operator to construct a ECDSA-MPC address where the private key is sharded with one half held by the user and the other half by the operator.
• 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.
Last year, Commerceblock released a revolutionary new wallet technology: the Mercury Wallet. This wallet implemented both statechains and CoinSwaps, introducing a new mixing tool as well as being the first wallet to introduce a new second-layer scaling solution. Statechains are an off-chain mechanism for transferring freely between anyone completely off-chain. The original owner/user collaborates with a statechain operator to construct a ECDSA-MPC address where the private key is sharded with one half held by the user and the other half by the operator. A timelocked, pre-signed withdrawal transaction is then created and signed by the operator before sending funds to the new address.
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. 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 featured a CoinSwap design that allowed users to mix multiple times without needing to transact on chain for each mix.
Commerceblock built off of Ruben Somsen’s original statechain proposal with some changes to make it work without the needed ANYPREVOUT/Eltoo sighash flag. This enabled users to send and receive funds without having to go through the blockchain and they could still maintain the same level of security and trust as they would with a regular blockchain transaction. It also allowed users to gain more privacy and anonymity when transferring funds as the transactions were not visible on the blockchain.
The Mercury Wallet was a groundbreaking development in the world of cryptocurrency, introducing a number of new technologies and ideas to the space. It allowed users to mix multiple times without needing to go through the blockchain for each mix and also provided additional privacy and anonymity when transferring funds. The wallet was built off of Ruben Sommen’s original statechain proposal and featured some changes to make it work without the needed ANYPREVOUT/Eltoo sighash flag. This enabled users to send and receive funds without having to go through the blockchain and they could still maintain the same level of security and trust as they would with a regular blockchain transaction. Overall, the Mercury Wallet provided a number of new features and capabilities for users to explore in the world of cryptocurrency.