Atomic settlement mechanisms, such as hash-time-locked contracts (HTLCs), are intentionally designed to be Sybil-blind, meaning they do not verify counterparty identity. This blindness is crucial for ensuring trustless and non-custodial transactions, as safety relies on mathematical guarantees rather than identity verification. While atomic settlement effectively eliminates default risk by ensuring either both parties complete the trade or funds are refunded, it does not address selection risk, such as transacting with addresses involved in wash trading or those an agent wishes to avoid. AI
RANK_REASON The item is an explanation of a technical concept (atomic settlement) and its implications, rather than a new event or release.
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