Atomic swap using zero-knowledge proofs, and applications thereof

A first system, comprising:

• a memory;
• and
• at least one processor coupled to the memory and configured to:
• receive a command identifying a proposed transaction between the first system and a second system, the proposed transaction being an exchange of a first asset with a second asset, wherein the first system has requested to receive the second asset in exchange for the first asset and the second system has requested to receive the first asset in exchange for the second asset;
• generate a first zero-knowledge proof proving that the first system is able to transfer the first asset;
• encrypt a first message including the first zero-knowledge proof, the encryption occurring with a first key such that only the second system can read the first message;
• transmit, to the second system, the first message, wherein a second encrypted message is generated, the second encrypted message including a second zero-knowledge proof proving that the second system is able to transfer the second asset, wherein the second message is encrypted by a second key such that only the first system can read the second message, and wherein transmitting the first message to the second system is a non-locking operation that allows the first asset to be available;
• receive a confirmation message from the second system indicating that the second system has verified the first zero knowledge proof;
• and
• in response to receiving the confirmation message and verification of the second zero-knowledge proof, execute the proposed transaction.

A non-transitory computer-readable device having instructions stored thereon that, when executed by at least one computing device, cause the at least one computing device to perform operations comprising:

• receiving a command identifying a proposed transaction between a first and a second system, the proposed transaction being an exchange of a first asset with a second asset, wherein the first system has requested to receive the second asset in exchange for the first asset and the second system has requested to receive the first asset in exchange for the second asset;
• generating a first zero-knowledge proof proving that the first system is able to transfer the first asset;
• encrypting a first message including the first zero-knowledge proof, the encryption occurring with a first key such that only the second system can read the first message;
• transmitting, to the second system, the first message, wherein a second encrypted message is generated, the second encrypted message including a second zero-knowledge proof proving that the second system is able to transfer the second asset, wherein the second message is encrypted by a second key such that only the first system can read the second message;
• receiving a confirmation message from the second system indicating that the second system has verified the first zero knowledge proof;
• and
• in response to receiving the confirmation message and verification of the second zero-knowledge proof, executing the proposed transaction,
• wherein the operations perform an atomic swap as a single transaction to avoid locking the first asset.