Author: Olaoluwa Osuntokun 2020-04-23 01:16:44
Published on: 2020-04-23T01:16:44+00:00
The Lightning Network is currently undergoing a major network-level update to its protocol. This update includes changes to the core channel state machine, HTLC scripts, and invoice handling. One of the most significant changes being made is replacing Hash-TimeLock Contracts (HTLCs) with Point-TimeLock Contracts (PTLCs) for lightning payments. This change enables payment de-correlation along routes, which improves privacy.The addition of PTLCs also opens up a range of new applications, such as stuckless payments, escrow contracts, and monotonic access structures on payment completion. Dual deployment is compatible and rolling out with the latest ECDSA based technique first, followed by the schnorr version later.Payment Points is another new development in the Lightning Network that has potential for improving multi-party payment setups. It allows for Barrier Escrows and enables Atomic Multi-Payment Setups. However, Payment Points require Taproot to be used, but 1p-ECDSA adaptor sigs can be used to execute PTLCs on Bitcoin today.To test and play with the plethora of PTLC-based proposals, some changes to existing nodes and a fork of at least one lightning implementation would be needed. Further thinking, development, and experimentation with PTLCs are encouraged to work towards having a PTLC-based Lightning Network that is safe and stable as soon as possible.
Updated on: 2023-05-23T03:52:02.982875+00:00