Author: Rusty Russell 2016-02-09 23:14:46
Published on: 2016-02-09T23:14:46+00:00
In a discussion between Anthony Towns and Rusty Russell, they explored different options for closing channels in Bitcoin's Lightning Network. They identified four options: keeping the channel open, unilateral closure by either party, or cooperative closure. The preferences of each option are strictly ranked as d > b > c. Unilateral closure is better than cooperative closure due to the OP_CSV delay. However, cooperative closure is better than unilateral closure if a lower transaction fee can be used or if funds can be spent directly to a useful output address. If one party attempts to persuade the other party to close unilaterally to avoid doing so themselves, it is more beneficial to do a cooperative close instead. With an OP_CSV on both sides of HTLCs, one party can make a realistic threat to lock up the other party's funds if they don't pay a certain amount for a cooperative close. Rusty expressed concern that the party going offline pays the least penalty while their counterparties have their funds tied up.
Updated on: 2023-05-23T18:23:43.800319+00:00