Unilateral force closure of a channel by a party.

A channel is in fact a shared wallet between two or more users. When you move money in a channel its and internal records, not on the bitcoin blockchain. When dispute occur, or when a channel no more can function well , one of the user can decide to call for channel closure and the last record within the channel will be recorded to the bitcoin blockchain.

Reply to this note

Please Login to reply.

Discussion

Example.

Suppose I & U created a channel with 1 btc each.

So the channel now has 2 btc. During channel activity, you sent me a net 0.5 btc. So off chain, i now have 1.5 btc and you have 0.5 btc, but this was never recorded on the blockchain. Supposed i fought with you and decided i no longer needed a channel with you. So i force close the channel. The last record of balance between me and you will be broadcasted on the blockchain.

So i will now have 1.5 btc and you will have 0.5 btc

Hmm that seems like it could be abused..

Not really. A channel is protected by time locked contract. If one party force close dishonestly they will lose their fund