Author: ZmnSCPxj 2021-09-21 02:11:42
Published on: 2021-09-21T02:11:42+00:00
In a conversation between John Law and ZmnSCPxj, ZmnSCPxj argues that requiring an on-chain transaction to update the set of channels created by a factory defeats the purpose of having a factory. He explains that factories can be created today without even using Taproot, by simply creating an n-of-n output for the funding transaction and then splitting it through an off-chain transaction. To change the set of channels, participants create and sign an alternate transaction that spends the original output to a new n-of-n with the same participants. They then sign and broadcast this transaction to update the set of channels. This process works today without changes to Bitcoin or Taproot. ZmnSCPxj concludes that this method is essentially a "no updates" factory that cuts through its closing transaction with the opening of a new factory.
Updated on: 2023-06-15T02:25:14.977828+00:00