Author: Nadav Kohen 2020-08-31 23:06:34
Published on: 2020-08-31T23:06:34+00:00
The author proposes a weak version of Eltoo channels and channel factories without using SIGHASH_ANYPREVOUT by using Smart Contracts Unchained (SCU) escrows. Eltoo is a proposal for a new way of doing Lightning channels which allows multi-party channels and easier watchtower implementations, among others. SCU is a participant-chosen "federation" of "escrows" that enforce contracts by giving users signatures of transactions produced by these contracts. The proposal replaces ANYPREVOUT with a federation of SCU Escrows to sign older states with newer ones. In the proposal, N parties enter into a multi-party channel through distributed key generation to reach a shared secret x. State(k) represents an agreed-upon commitment of the channel state at update k. Delta is a CSV timelock. A single SCU escrow with public key E is used in the proposal but can be extended to a threshold scheme of escrows. Transactions include funding transaction, commitment transaction, state transaction, commitment update transaction, and state update transaction. Update mechanism is the same as expected for a multi-party payment channel, but all parties must sign the commitment State(k) before they sign State Transaction k. Settlement includes cooperative and non-cooperative closes.
Updated on: 2023-06-03T02:03:33.313393+00:00