Author: Christian Decker 2018-02-05 13:21:54
Published on: 2018-02-05T13:21:54+00:00
A Lightning developer brought up a point about state invalidations in Lightning which is not suitable for multi-party negotiations beyond two parties because the potential reactions to a party cheating grows exponentially in the number of parties in the contract. The Channel Factories paper relies on the Duplex Micropayment Channel construction instead of retaliation construction in LN. ZmnSCPxj asked Abhishek Sharma about the details of Bitcoin transactions, how commitment transactions spend and requested a graph of transaction chains that ensure correct operation of this idea. He also referenced the Burchert-Decker-Wattenhofer Channel Factories paper and asked how it's different from Sharma's idea. Sharma proposed a specific kind of transaction where three parties commit their funds all at once and are able to move their funds between the three open channels between them. This provides users with an ability to route their transactions better with fewer total channels needing to be open. He gave an example of his idea and illustrated how it could improve users' ability to route their transactions. C always knows, if she is following the protocol, exactly how much should be in channel AB and can prove this. If there were four parties, C couldn't prove on her own that some set of parties colluded to trade on an old balance. He further explained why such a mechanism can be useful and showed how parties can send BTC without opening a new channel and waiting for the network to verify it.
Updated on: 2023-05-24T19:00:40.045328+00:00