Closing Transaction Cut-through as a Generalization of Splice-in/Splice-out

Summary:

The writer proposes an alternative to a splice-in/splice-out ("channel top-up") by implementing a "cut-through" for a channel close transaction. A normal channel close transaction spends a single input and makes 1 or 2 outputs. However, with the proposed cut-through, both sides could provide signed normal transactions that spend the outputs and cooperatively create a new close transaction that cuts through the original close transaction and the additional normal transactions. This generalization would be useful if one wants to "reseat" a channel to another peer, which could be done off-chain if both peers and the node belong to the same channel factory. The proposed reseat operation allows the closing of a channel and opening of another in a single on-chain transaction using the closing transaction cut-through.

Updated on: 2023-05-24T23:09:23.730494+00:00