Author: Christian Decker 2018-04-30 15:41:38
Published on: 2018-04-30T15:41:38+00:00
The Lightning Network implementation teams have developed a new update mechanism called eltoo for off-chain protocols. The mechanism is similar to the sequence number mechanism in the original Bitcoin implementation, but it is enforceable by overriding subsequent states on-chain. Eltoo completely removes the need to estimate fees ahead of time and allows fees to be bumped using CPFP or RBF. It can also be used as a generic update mechanism for an off-chain contract with a larger number of participants. Before implementing eltoo, a minor change to Bitcoin is needed, namely the introduction of the SIGHASH_NOINPUT flag for signatures. This will put the community on the road to a more reliable and simpler Lightning Network, incorporating a new update mechanism that can also be used for many other applications. The full details of the proposal can be found in the paper linked at [2].
Updated on: 2023-05-20T05:27:43.652408+00:00