Author: Anthony Towns 2023-04-04 00:46:21
Published on: 2023-04-04T00:46:21+00:00
A new construction called "tunable penalties" has been proposed for two-party lightning channels that allows for a penalty to be imposed on cheating without resulting in complete loss of funds. This is different from eltoo, where if access to the latest state is lost, the channel can still be closed to an older state. With tunable penalties, if an old transaction is broadcasted to close the channel, the counterparty can hold the share of the channel funds hostage indefinitely while penalizing the broadcaster. Although this may be an improvement over losing all funds, it does create additional complexity. The proposal was made by JohnLaw2 and can be found on GitHub and discussed on Lightning-dev mailing list.
Updated on: 2023-06-03T12:17:01.900546+00:00