I read that the first Atomic Swap took place between Bitcoin and Ethereum. Now I must admit my knowledge of the bits and bytes aspect of this stuff is a bit fuzzy so maybe someone else can add to this in the comments.
That said, before yesterday (or the day before), Atomic Swaps were done between coins developed on the bitcoin blockchain. These tokens are on the same platform and based upon the same coding. The move from the bitcoin to ethereum blockchain is like jumping planets. We just moved into a totally different world.
Reports came out about a month ago that stated the Feds had software that tracked transactions as they went around the bitcoin network. This was done as a way to be able to go after those who were going to use bitcoin for illegal purposes and to avoid taxes. The privacy and anonymity many thought Bitcoin provided isn't there. It is an open ledger that is easily tracked.
Which brings me to the Swap yesterday. The Feds can jump around the bitcoin blockchain with great accuracy. However, the second someone goes from bitcoin to ethereum, they just left Earth and stepped on Mars. Trying to track them using their GPS isnt going to work.
So here is how it could work. I invest in a coin on the bitcoin network. Over time, I realize a huge gain for which I owe taxes. Instead of selling my bitcoin which would put that gain into effect, I simply swap it over for Etherium. Hence, the trail stops on my bitcoin but the Feds have no idea where I went next. Imagine if I am able to do this with 5 or 10 different blockchains.
What do you think? Is the development of the Atomic Swap making tax evasion the new norm in the crypto world?
Photos from google images