Author: ZmnSCPxj 2018-04-11 09:40:11
Published on: 2018-04-11T09:40:11+00:00
A new technique for creating off-chain transactions called `nSequence`d transactions is described. Only the funding transaction is on-chain, while all other transactions are kept off-chain. This approach uses a sequence of transactions to represent a binary counter and allows for easy incrementation by replacing the appropriate transaction with one that has a different nSequence value. The number of transactions required depends on the size of the counter, but can be up to 33 transactions in sequence for a 32-bit counter. In a unilateral close, all off-chain transactions must be broadcasted sequentially to the blockchain, which can be time-consuming. However, normal operation only requires off-chain transactions, saving blockchain space. The drawback is the large number of transactions required for a unilateral close, compared to the Poon-Dryja approach which only requires two transactions in sequence. For low numbers of updates, a quaternary counter terminating in multiple Poon-Dryja channels can be used. Overall, this technique offers an alternative approach for creating off-chain transactions.
Updated on: 2023-05-24T19:05:57.534191+00:00