dido:public:ra:xapend:xapend.a_glossary:p:payment_channel
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dido:public:ra:xapend:xapend.a_glossary:p:payment_channel [2020/05/06 00:06] 52.45.51.99 ↷ Links adapted because of a move operation |
dido:public:ra:xapend:xapend.a_glossary:p:payment_channel [2021/10/04 13:40] (current) 50.19.247.197 ↷ Links adapted because of a move operation |
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| ===== Payment Channel ===== | ===== Payment Channel ===== | ||
| - | [[dido:public:xapend.glossary| Return to Glossary ]] | + | [[dido:public:ra:xapend:xapend.a_glossary:start| Return to Glossary ]] |
| - | **Payment Channel** is a medium between two or more parties that allows them to transact bitcoins amongst them a number of times without sending all these transactions to the base layer, i.e., Bitcoin’s blockchain. | + | **Payment Channel** is a medium between two or more parties that allows them to transact [[dido:public:ra:xapend:xapend.a_glossary:b:bitcoin|bitcoins]] amongst them a number of times without sending all these transactions to the base layer, i.e., Bitcoin’s [[dido:public:ra:xapend:xapend.a_glossary:b:blockchain|blockchain]]. |
| - | A payment channel essentially is a 2-of-2 [[dido:public:glossary:m:multi-signature]] wallet where parties interested in transacting with each other commit funds and this is called funding transaction that happens on-chain. | + | A payment channel essentially is a 2-of-2 [[dido:public:ra:xapend:xapend.a_glossary:m:multi-signature]] [[dido:public:ra:xapend:xapend.a_glossary:b:bitcoin_wallet|wallet]] where parties interested in transacting with each other commit funds and this is called funding transaction that happens on-chain. |
| - | Once this on-chain transaction is complete, many transactions can happen between the two parties involved in the payment channel. But the transactions can only happen when both the parties sign thus updating the state of the channel (or you can say an offline shared ledger between them) | + | Once this on-chain transaction is complete, many transactions can happen between the two parties involved in the payment channel. But the transactions can only happen when both the parties sign thus updating the state of the channel (or you can say an offline shared [[dido:public:ra:xapend:xapend.a_glossary:l:ledger|ledger]] between them) |
| Thus many signed but broadcasted transactions can be exchanged between the parties involved in the payment channel. | Thus many signed but broadcasted transactions can be exchanged between the parties involved in the payment channel. | ||
dido/public/ra/xapend/xapend.a_glossary/p/payment_channel.1588737966.txt.gz · Last modified: 2020/05/06 00:06 by 52.45.51.99
