The following is a brief summary of a blog post written by JL777.
Previously, Private or Z_address-Only Smart Chains Were Considered Incapable of Making Atomic Swaps
Previously, the Komodo team had assumed that atomic swaps would not be available on private-transaction only Smart Chains.
These types of Smart Chains force users to use only z_addresses. These types of addresses are unique in that, unlike a normal cryptocurrency address, they allow users to send funds from one z_address to another without leaving any clear data trail in the public domain for later analysis.
Naturally, since the z_addresses reveal no public data available, atomic swaps can be difficult to achieve, seeing as how an atomic swap relies on public data to create a secure swap between separate blockchains.
Komodo Smart Chains have a Potential Opportunity to Perform Atomic Swaps Using Z_address on Smart Chains
There is now a possible solution. This solution involves using z_address’s native ability to provide a viewing key that allows anyone on the network to know the contents held in an address.
The solution may require that the viewing key data be made fully public for the purposes of the swap. Having this data available should provide enough of a window of opportunity to create all the public data necessary to perform secure atomic swaps is available.
The format for conducting these swaps may be different compared to a non-Z-address blockchain, but this is to be expected.
This solution would also remove a layer of privacy from the funds on the Z_address-only Smart Chain, but having the option available may be a desirable option for some Komodo communities.