Author: jlspc 2023-04-08 22:30:54
Published on: 2023-04-08T22:30:54+00:00
John Law has released a construction that allows for two-party lightning channels with existing opcodes where cheating won't result in the loss of all funds. The tunable penalties system is an improvement on ln-penalty and prevents counterparty from holding your share of the channel funds hostage indefinitely if you attempt to close the channel to an old state. However, if the other party doesn't put their final State transaction and Commitment transaction on-chain after seeing a Trigger transaction, then after a 3*to-self-delay, the party that forgot the state can initiate the Decker-Wattenhofer protocol to settle the channel. Eltoo protocol could also be used instead of the Decker-Wattenhofer protocol if APO is available. The extension is described in the Tunable Penalties paper and in the Factory Optimized Channels paper.
Updated on: 2023-06-03T12:24:44.640334+00:00