Detailed protocol design for routed multi-transaction CoinSwap



Summary:

In a discussion about interdependent chains of contracts like Lightning or CoinSwap, the issue of avoiding disequilibrium in local HTLC ledger arises. The order of events is enforced by absolute timelocks or relative-time locked contracts. A theoretical issue with RBF-range is also addressed, where miners may censor counterparty claim tx, and private key turnover is still useful even in an absolute-timelock world. It is suggested that intermediating the chain with the taker ensures that in case of previous hop failure, taker funds are only timelocked for the delta of this faulting hop not the whole route. However, this increases risk of next hop default and thus latency. Private key turnover is useful by reducing blockspace required by each hop.


Updated on: 2023-06-14T03:12:49.143894+00:00