Author: Anthony Towns 2023-02-06 10:48:09
Published on: 2023-02-06T10:48:09+00:00
In an email thread, Olaoluwa Osuntokun discussed the "free call option" problem with regard to transferring fungible assets via asset-aware LN endpoints. The issue arises when the final hop withholds the HTLC, risking payment cancellation if it is not accepted by the recipient due to timing or insufficient funds. However, a possible solution was suggested where Alice sends $100 to Bob who forwards 0.004 BTC to Carol and then Elizabeth; then, before accepting the payment, Elizabeth extends the path with a BTC/USD exchange with Dave via a short loop. If Dave doesn't immediately forward the USD to Elizabeth, she can cancel the transaction, refunding Carol all the way back to Alice, even while waiting for Dave. The approach also means Alice doesn't need to know what Elizabeth's currency preference is.
Updated on: 2023-06-03T08:18:48.450733+00:00