Author: Pierre 2015-09-24 12:13:42
Published on: 2015-09-24T12:13:42+00:00
In this email conversation, the topic of Lightning Network is discussed. The Lightning Network consists of a series of contracts between parties A, B, C, D, and E, where funds are locked in a contract. If B provides a secret R, then E receives the funds and the contract is fulfilled. However, if a timeout occurs, the contract is voided and there is no refund since the payment never took place. The initial contract signed by A acknowledges the risk of having funds locked for a maximum of $timeout. Pierre suggests two ways for A to reduce the timeout: finding a shorter path or convincing B/C/D to use small timeouts between each node. This would reduce A's timeout to a few hours. It is unclear why the default timeout is set to one day in the original lightning presentation.
Updated on: 2023-05-23T20:31:03.829242+00:00