Author: ZmnSCPxj 2017-04-29 15:17:30
Published on: 2017-04-29T15:17:30+00:00
The post discusses different methods of making funding transactions for micropayment channels, even if SegWit is never activated. It outlines the process for creating bidirectional micropayment channels using revocation keys and timelocks, which has a limited channel lifetime and may lead to hostage situations. Another method, Child Pays For Parent, involves creating a complicated funding transaction with no transaction fee and relying on miners to include it in a block. This has an unlimited channel lifetime but may also result in hostage situations. The third method, Hashlocked Escrow, requires a more complicated funding transaction and both parties to place funds in escrow to ensure symmetry. While this method has an unlimited channel lifetime, it also has drawbacks such as requiring high costs and being vulnerable to race conditions in case of an abort. Overall, each method has its own advantages and disadvantages, and users must choose the one that suits their needs best.
Updated on: 2023-05-24T01:31:55.911234+00:00