Author: Subhra Mazumdar 2020-03-06 07:03:20
Published on: 2020-03-06T07:03:20+00:00
The email conversation revolves around the topic of atomic swaps and fair transfer of funds between parties A and B. Subhra, the writer of the email, is seeking clarification on whether just one HTLC from A to B would suffice instead of two for a simple transfer of funds from A to B. The discussion is based on the paper by Poon and Dryja on Bitcoin Lightning Network and the construction of HTLC. Lloyd Fournier, the recipient of the email, suggests that the penalty idea is the basis for doing atomic swaps fairly and shares a link to a relevant document. The problem identified is that the scenario discussed in the shared PDF is based on an exchange of assets whereas the matter at hand deals with a simple transfer of funds from A to B. Two situations are presented to clarify the issue. The first situation involves both A and B locking in 0.1 BTC each (i.e. 0.2 BTC) through HTLC A&B on channel AB. In the second situation, A locks 0.1 BTC, and HTLC B&A is established on channel BA whereby B locks 0.1 BTC. Subhra seeks clarification on why the first situation will not be possible and proposes an alternative solution.
Updated on: 2023-06-02T23:58:41.675599+00:00