Unchained How to Trade on Crypto Exchanges Without Fear of Hacks - Ep.120
May 21, 2019
Sharon Goldberg, CEO of Arwen and a computer science professor at Boston University, dives into revolutionary strategies for secure trading on crypto exchanges. She explains how Arwen's protocol protects coins from hacks, contrasting it with decentralized exchanges. The conversation explores custody options, smart contract integrations, and the importance of interoperability in crypto security. Goldberg also imagines how innovative solutions like Arwen could have prevented past exchange hacks, making for a fascinating discussion on the future of cryptocurrency trading.
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Goldberg's Entry into Crypto
- Sharon Goldberg's PhD student, Ethan Heilman, inspired her to explore Bitcoin's security.
- This led to research on Bitcoin's communication layer and vulnerabilities, influencing protocol changes.
Arwen's Escrow Mechanism
- Arwen uses escrows on respective blockchains (e.g., Bitcoin, Bitcoin Cash) to back trades.
- This functions like a layer-two protocol for faster transactions without constant blockchain interaction.
Escrow Dynamics in Arwen
- Users fund an escrow on their chosen blockchain (e.g., Bitcoin) and the exchange funds a corresponding escrow.
- This enables atomic swaps backed by both escrows, mitigating counterparty risk.