[Lightning-dev] Eltoo in a tree

ZmnSCPxj ZmnSCPxj at protonmail.com
Mon Apr 1 11:09:51 UTC 2019

Good morning Hossein,

This is already known.
Indeed, this is the basis of Burchert-Decker-Wattenhofer "Channel Factories". https://www.tik.ee.ethz.ch/file/a20a865ce40d40c8f942cf206a7cba96/Scalable_Funding_Of_Blockchain_Micropayment_Networks%20(1).pdf

See also discussion regarding Fulgurite. https://lists.linuxfoundation.org/pipermail/lightning-dev/2018-December/001721.html

It is likely that channel factories of some form will be created after we can get Decker-Russell-Osuntokun ("eltoo") online.
Decker-Russell-Osuntokun requires some kind of `SIGHASH_NOINPUT`.

In many ways, a channel is simply a type of cryptocurrency system.
If we were to generate some kind of hierarchical system of types:

* Cryptocurrency System (abstract)
  * Blockchain (abstract)
    * Bitcoin (concrete) - the only blockchain that can ever exist
  * Offchain cryptocurrency system (abstract) - requires an existing Cryptocurrency System to construct
    * Poon-Dryja (concrete) - current Lightning Network; 2-party only
    * Decker-Wattenhofer (concrete) - multiparty but requires long locktimes on unilateral
    * Decker-Russell-Osuntokun (concrete) - multiparty, requires short locktimes on unilateral

Burchert-Decker-Wattenhofer factories are just the realization that you can do something like instantiate a Poon-Dryja channel inside a Decker-Wattenhofer channel inside a Bitcoin blockchain.

Similarly, your NOctaHub is just another offchain cryptocurrency system, and the realization that you can nest other offchain cryptocurrency systems inside it is simply the same realization that Burchert-Decker-Wattenhofer had.


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