Locking of funds by both parties in HTLC to enforce penalty

Author: Subhra Mazumdar 2020-03-06 06:34:29
Published on: 2020-03-06T06:34:29+00:00

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Summary:

In an email conversation between Subhra Mazumdar and Lloyd Fournier, they discussed the Bitcoin Lightning Network and the construction of Hashed Time Lock Contracts (HTLCs). Subhra proposed a modification to the terms of HTLCs which would enforce a penalty on the counterparty in case of misbehavior, to prevent griefing attacks. Lloyd replied that while this penalty idea is the basis for doing atomic swaps fairly, it only works for the final hop and not across multiple hops. He provided a link to a paper on financial cryptography which explains this concept further. The conversation ended with Subhra signing off.

Updated on: 2023-06-02T23:57:48.215026+00:00