Re:Taproot, Bitcoin’s long-anticipated upgrade, has activated
by jallen_dot_dev on Monday November 15, 2021 @07:50PM
(#29235128)
There would first be 1 broadcasted on-chain transaction setting up the channel, with X of my bitcoin and Y of your bitcoin being locked up. This prevents double spend. Then, you and I pass n signed transactions between each other updating our balances Xt & Yt for each t, t+1, ...t+n. At any time, either one of us can broadcast the final transaction with the most up to date balance and unlock the coins.
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Re:Taproot, Bitcoin’s long-anticipated upgrade, has activated
by tgb on Monday November 15, 2021 @09:31PM
(#29236006)
So it requires one on-chain transaction per pair of parties instead of one per transaction? Clever and I suppose useful but seems a little limited in use, given that the funds are locked the whole time. Good for two parties that frequently have transactions going in both directions?
Re:Taproot, Bitcoin’s long-anticipated upgrade, has activated
by jallen_dot_dev on Monday November 15, 2021 @09:43PM
(#29236102)
That's right. You can also form a chain of these channels, so Alice can pay Bob even though she doesn't have a channel with him, if they both connect to Carol using atomic transactions that update the 2 channels accordingly.