Author: Burak Keceli 2023-05-26 11:56:00
Published on: 2023-05-26T11:56:00+00:00
Ark can be used for three purposes: mixing coins, paying Lightning invoices, and making internal transfers. Ark is a scalable, off-chain mixer that allows people to mix their coins with others without waiting for on-chain confirmations. It is interoperable with Lightning, which means it can be used to pay Lightning invoices without waiting for on-chain confirmations as well. Users can make internal money transfers using Ark funds without introducing inbound liquidity assumptions. However, the recipient-end has to wait for several on-chain confirmations to consider their payment final. In terms of utilizing Ark for depositing BTC, Bob wants to deposit 1 BTC with Alice, so he asks his friend Charlie to send 1 BTC to an on-chain Bitcoin address. There are three things Bob can do: unilaterally withdraw, collaboratively withdraw, or collaboratively trade commitments. Collaboratively trading commitments involves crafting transactions containing commitment outputs, connector outputs, and change outputs. Bob creates an unsigned PSBT, places the input that Charlie has previously funded, and passes his PSBT to Alice. Alice signs her one-in, three-out transaction and broadcasts it. Bob can now claim 1 BTC Charlie has previously funded by revealing the descendant transaction of connectors output. He should claim this before four weeks.If Bob wants to send 1 BTC to Dave, Alice crafts a transaction containing three outputs similar to the previous example. The difference is that this time, the descendant of the commitment output is Dave’s vTXO instead of Bob’s. The remaining steps follow the same process as before. Dave would have to wait for enough confirmations to consider his payment final if he had been online all along.
Updated on: 2023-06-16T18:33:40.720101+00:00