PSBT
Atomic Execution Architecture
PSBTs provide the cryptographic foundation for atomic swaps within DotSwap Nexus, ensuring either complete asset exchange or transaction failure without partial execution risks. This approach eliminates counterparty risk through Bitcoin's consensus mechanism while enabling complex multi-party coordination.
Execution Coordination Framework
The PSBT execution process follows a systematic approach that balances security, efficiency, and user control:
Draft Construction
Nexus Composer assembles inputs, outputs, and safeguards
Comprehensive validation of all transaction components
Complete transaction transparency before commitment
Maker Signatures
Each participating node signs owned inputs after validation
Independent validation by each liquidity provider
Maker risk controls and execution limits
Taker Review
User verifies outputs including amounts, fees, and change
Pre-commitment verification of all transaction outcomes
Final approval authority with complete information
Final Signature
Taker completes signature requirements
Cryptographic completion of atomic execution
Irreversible commitment with full awareness
Network Broadcast
Transaction propagated for consensus confirmation
Bitcoin network validation and confirmation
Transparent settlement with verifiable outcomes
Built-in Protection Mechanisms
The protocol implements comprehensive safeguards protecting all participants throughout the execution process:
Transaction-Level Protections:
Slippage Guard Outputs: Automatic transaction invalidation if final execution rate exceeds user tolerance
Time-Lock Mechanisms: Automatic cancellation preventing indefinite fund commitment through nLockTime implementation
Fee Bump Compatibility: Replace-by-fee support enabling priority adjustment for reliable confirmation
Conditional Execution: Complex conditional logic ensuring execution only under specified conditions
Operational Safeguards:
Pre-execution Simulation: Complete transaction simulation before signature collection
Multi-party Validation: Independent verification by all transaction participants
Real-time Monitoring: Continuous status tracking throughout execution lifecycle
Emergency Recovery: Systematic procedures for handling exceptional scenarios
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