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Verifiable Encrypted Timed Signature Scheme and Its Application in Blockchains
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Summary
Verifiable Timed Signatures (VTS) let a solver check a timed signature's validity before spending computation, but in existing schemes solving can begin as soon as the signature is received. This is risky in atomic swaps, where a malicious initiator with fast hardware could solve early and threaten the counterparty's funds, while raising the time parameter prolongs lock-up periods. The authors propose Verifiable Encrypted Timed Signatures (VETS), which separate public verification from time-based extraction and allow extraction only after an unlock key is released, tied to an external event such as the publication of a refund transaction.