delvingbitcoin

Multi-Party Eltoo with bounded settlement

Multi-Party Eltoo with bounded settlement

Original Postby instagibbs

Posted on: January 6, 2025 18:07 UTC

The discussed scheme presents a significant method to mitigate the potential for malicious activities in channel settlement by limiting parties to a single opportunity for updating the channel state on-chain.

This approach is particularly relevant in scenarios where employing trustless watchtowers is not feasible without their direct integration into the signing quorum. In an ideal setup, there would be N counterparties who form a consensus quorum responsible for state updates, alongside more than N slots allocated for state submission. However, it's crucial to acknowledge that each addition to the number of counterparties (N) incurs costs in terms of vbytes and necessitates adjustments in relative delay requirements. This highlights the complexity and the lack of definitive solutions in optimizing such systems, underscoring the inherent trade-offs involved in designing mechanisms for secure and efficient channel settlements.

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