Replying to Avatar The Satokespeare

Imagine a game of poker, you buy in chips worth some amount held buy the casino. This buying in of chips is essentially opening up a channel, the casino is mostly a multi sig bitcoin address shared by whomever you’re opening a channel with.

Now you can play with those chips as much as you want make as many bets as you wants and whenever you want to close the game the final amounts are traded back with the casino. This is like the closing of the channel.

Not sure if I made a lot of sense, but it’s the closest analogy o could think of 😅
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tanel 2y ago

wonderful analogy, got me even more curious now how the technicals work 💜🫶

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The Satokespeare 2y ago

All transactions are signed by the parties involved with their keys but are not sent on chain only meant for settlement internally on the channel. On chain settlement only happens once the channel closes.

This is a hand-wavy part for me as well rn. Need to go deep into the internals, learnt some part of the protocol which overlapped with nostr, a lot more still to learn.