About the Lightning Network:
Two users first lock bitcoin into a jointly controlled 2-of-2 multisig address with an on-chain transaction, thereby opening a payment channel.
If one party closes the channel using an outdated balance record, the other can submit a penalty transaction within the prescribed time and take all the funds in the channel, making cheating not worth the cost.
$BTC 77442.7 (-0.74%)
Two users first lock bitcoin into a jointly controlled 2-of-2 multisig address with an on-chain transaction, thereby opening a payment channel.
If one party closes the channel using an outdated balance record, the other can submit a penalty transaction within the prescribed time and take all the funds in the channel, making cheating not worth the cost.
$BTC 77442.7 (-0.74%)
