Author: ZmnSCPxj 2020-07-04 21:05:34
Published on: 2020-07-04T21:05:34+00:00
The MAD-HTLC (Miner-Activated Delayed Hash Time-Locked Contract) has two contracts, a Deposit and a Collateral. The Deposit comprises three redeem paths: Alice with preimage "A", Bob with preimage "B" and any entity (miner) with both preimages "A" and "B". The Collateral is the fidelity bond and has two redeem paths: Bob with no preimage and any entity (miner) with both preimages "A" and "B". There are three cases for the MAD-HTLC. If Alice reveals the hashlock at any time, one BTC goes to Alice and one BTC goes to Bob as a fidelity bond refund. If Bob reveals the bob-hashlock after time L, two BTC goes to Bob as an HTLC refund and fidelity bond refund. If Bob cheats, anybody reveals both hashlock and bob-hashlock, then two BTC goes to the miner. However, these contracts may not be safe if the counterparty is a miner, as it incentivizes competing miners to reorg the chain and redirect the funds of the MAD-HTLC to themselves.
Updated on: 2023-06-14T02:34:57.971976+00:00