Author: ZmnSCPxj 2018-12-28 03:14:39
Published on: 2018-12-28T03:14:39+00:00
The issue of free optionality arises when a WJT/BTC exchange rate is offered by one party, and the other party routes an LN payment from their BTC node to their WJT node through the former's multi-chain node. The problem with this is that the payer may wait for the market price to fluctuate out of their favor until the option/HTLC expiry. ZmnSCPxj suggests that the atomic swapping of preimage and final HTLC could solve this issue, wherein the payment would settle immediately in the two-party case. However, the mechanism to create this swap is unclear, and it is still uncertain whether this solution would work with multiple hop nodes or when communicating with pseudonymous public keys. In addition, the proposal could lead to the creation of riskless, free-of-premium American Call Options, which could be spammed by rational entities even if the timelock is short. If intermediate nodes are disallowed, then it is more feasible to know who the final destination will be and censor transactions.
Updated on: 2023-06-02T16:25:31.123227+00:00