Submarine Swaps - Revision history

MiltonPusser at 14:43, 26 March 2019

2019-03-26T14:43:17Z

← Older revision		Revision as of 14:43, 26 March 2019
Line 1:		Line 1:
	Submarine Swaps allow you to trade on-chain tokens for Lightning invoice payments.		Submarine Swaps allow you to trade on-chain tokens for Lightning invoice payments.

	In essence, Alice sends Bob an LN payment secured by a secret she knows, preventing Bob from claiming it. Bob then creates an onchain payment that Alice can spend by revealing the secret. Alice waits for the payment to receive a suitable number of confirmations and then spends it onchain to any address she chooses—revealing the secret in the process. Bob sees Alice's onchain transaction and uses its revealed secret to claim the LN payment Alice sent him earlier. If Alice doesn't reveal the secret, the onchain payment contains a refund condition that allows Bob to spend it back to himself after a timelock expires. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>		In essence, Alice sends Bob an LN payment secured by a secret she knows, preventing Bob from claiming it. Bob then creates an onchain payment that Alice can spend by revealing the secret. Alice waits for the payment to receive a suitable number of confirmations and then spends it onchain to any address she chooses—revealing the secret in the process. Bob sees Alice's onchain transaction and uses its revealed secret to claim the LN payment Alice sent him earlier. If Alice doesn't reveal the secret, the onchain payment contains a refund condition that allows Bob to spend it back to himself after a timelock expires. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>

	Most of the process is trustless, so neither party has an opportunity to steal from the other (provided the software operates (and is operated) correctly). The exception is the creation of the initial onchain transaction and the possible need for Bob to create a refund transaction: if the trustless exchange doesn't happen, Bob will receive no compensation for the onchain transaction fees required for both of those transactions. According to the Loop documentation, their implementation has Alice send Bob a small trusted payment via LN in advance of the trustless exchange as an act of good faith and an assurance that the operation won't end up costing Bob money. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>		Most of the process is trustless, so neither party has an opportunity to steal from the other (provided the software operates (and is operated) correctly). The exception is the creation of the initial onchain transaction and the possible need for Bob to create a refund transaction: if the trustless exchange doesn't happen, Bob will receive no compensation for the onchain transaction fees required for both of those transactions. According to the Loop documentation, their implementation has Alice send Bob a small trusted payment via LN in advance of the trustless exchange as an act of good faith and an assurance that the operation won't end up costing Bob money. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>

MiltonPusser at 14:42, 26 March 2019

2019-03-26T14:42:31Z

← Older revision		Revision as of 14:42, 26 March 2019
Line 1:		Line 1:
	Submarine Swaps allow you to trade on-chain tokens for Lightning invoice payments.		Submarine Swaps allow you to trade on-chain tokens for Lightning invoice payments.

			In essence, Alice sends Bob an LN payment secured by a secret she knows, preventing Bob from claiming it. Bob then creates an onchain payment that Alice can spend by revealing the secret. Alice waits for the payment to receive a suitable number of confirmations and then spends it onchain to any address she chooses—revealing the secret in the process. Bob sees Alice's onchain transaction and uses its revealed secret to claim the LN payment Alice sent him earlier. If Alice doesn't reveal the secret, the onchain payment contains a refund condition that allows Bob to spend it back to himself after a timelock expires. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>

			Most of the process is trustless, so neither party has an opportunity to steal from the other (provided the software operates (and is operated) correctly). The exception is the creation of the initial onchain transaction and the possible need for Bob to create a refund transaction: if the trustless exchange doesn't happen, Bob will receive no compensation for the onchain transaction fees required for both of those transactions. According to the Loop documentation, their implementation has Alice send Bob a small trusted payment via LN in advance of the trustless exchange as an act of good faith and an assurance that the operation won't end up costing Bob money. <ref>https://bitcoinops.org/en/newsletters/2019/03/26/</ref>

	= Services =		= Services =
	* [[Loop]] by Lightning Labs		* [[Loop]] by Lightning Labs
	* https://submarineswaps.org/		* https://submarineswaps.org/

MiltonPusser at 14:38, 26 March 2019

2019-03-26T14:38:32Z

← Older revision		Revision as of 14:38, 26 March 2019
Line 1:		Line 1:
	~~https://submarineswaps~~.~~org/~~		Submarine Swaps allow you to trade on-chain tokens for Lightning invoice payments.

	~~Trade on-chain tokens for~~ Lightning ~~invoice payments~~.		= Services =
			* [[Loop]] by Lightning Labs
			* https://submarineswaps.org/

MiltonPusser: Created page with "https://submarineswaps.org/ Trade on-chain tokens for Lightning invoice payments."

2019-01-20T10:07:19Z

Created page with "https://submarineswaps.org/ Trade on-chain tokens for Lightning invoice payments."

New page

https://submarineswaps.org/

Trade on-chain tokens for Lightning invoice payments.