LNHANCE bips and implementation

LNHANCE bips and implementation

Original Postby moonsettler

Posted on: January 21, 2024 23:17 UTC

The concept of using a contract similar to LN-symmetry for statecoins can lead to an innovative approach in the realm of cryptocurrency.

This method allows for what could be termed as 'immortal' statecoins, where the longevity and utility of digital assets are significantly enhanced. By leveraging the idea of stacking constructs, it is possible to create a system where a single channel funding can be utilized by an indefinite number of users. This is achieved by transferring one end of an LN-symmetry channel through these stacks.

When applying this concept, each channel's lifespan culminates in the initiation of a subsequent channel on the blockchain. This sequence of events ensures that there is a continuous flow from one channel to the next. Moreover, every new channel established comes with its own timeout mechanism, which dictates the validity period of the latest state. The implication of this arrangement is profound as it creates a self-perpetuating cycle of channel openings, leading to greater efficiency and scalability within the network. The ability to extend the functionality of a single funding channel across multiple users without the need to close and reopen channels frequently can simplify transactions and reduce associated costs.