Protocol Design
Security guarantees and trust assumptions of the Sparkle Protocol
Core Security Properties
Zero Key Custody
Private keys never leave the user's browser wallet. The protocol coordinator only sees public keys and hash commitments. No server-side key storage.
Cryptographic Atomicity
Hash Time-Locked Contracts (HTLCs) enforce all-or-nothing execution. Either both parties receive their assets, or the trade times out and assets are refunded.
Timelock Protection
CLTV timelocks (BIP-65) guarantee sellers can always reclaim their inscriptions if buyers abandon trades. No funds can be permanently locked.
Lightning Native
Protocol designed for Lightning Network settlement from the ground up. Preimage revelation on LN directly enables on-chain claims via Taproot.
Technical Standards
Bitcoin Standards
- BIP-341Taproot script-path spending
- BIP-342Tapscript validation
- BIP-65CLTV timelock verification
- BIP-174PSBT transaction format
Lightning Standards
- BOLT-11Payment request encoding
- SHA-256Preimage hash binding
- Hold InvoicesConditional payment release
Trust Assumptions
The coordinator must be online for trade matching. However, funds cannot be stolen if coordinator is compromised - only trade availability is affected.
Standard Bitcoin consensus assumptions apply. Timelock security depends on accurate block height progression.
Users must trust their browser wallet extensions. Signing happens client-side; the protocol cannot protect against compromised wallets.
Mainnet Validation
The protocol has been validated on Bitcoin mainnet with successful atomic swaps. See the proof bundle for transaction verification.
View Mainnet Proofs