Author: ZmnSCPxj 2023-05-07 22:54:50
Published on: 2023-05-07T22:54:50+00:00
The message discusses the safety of dual-funded 0-conf transactions. The author suggests that such transactions can be made safe if the initiator uses swap-in-potentiam addresses with the acceptor. If the initiator stalls, the acceptor can retaliate by refusing to sign the swap-in-potentiam UTXOs which will also lock their funds until the swap-in-potentiam times out. This prevents liquidity griefing from being cost-free. The expected use-case for dual-funded 0-conf transactions is when a user expects onchain operations to be slow and take multiple confirmations to receive. Once there is deep confirmation that a swap-in-potentiam address has been funded, it can be transferred immediately to a 0-conf Lightning channel.However, the initiator still needs to trust that the acceptor does not double-spend out from under the initiator. The author notes that LSPS3 Promise To Unconditionally Fund 0-conf could address this concern. Additionally, the author believes that the initiator can trust the acceptor in the case of dual-funding flow.
Updated on: 2023-06-03T13:00:44.712633+00:00