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Questions tagged [off-chain]

Transfers that don't appear on the blockchain.

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1answer
22 views

off-chain payment channels: Do we need to trust “Payment Service Providers”?

A paper entitled: "Privacy in Bitcoin Transactions: New Challenges from Blockchain Scalability Solutions" has tried to investigate privacy issues of the Bitcoin influenced by the solutions for ...
3
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2answers
45 views

Where off-chain transactions are registered afterwards?

Reading the questions and answers on this StackExchange, i've learned that into Exchanges there's no transactions over public blockchains being performed, the funds are exchanged among accounts into ...
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1answer
45 views

Implementing an “ad-hoc-like network of payment channels” on top of Bitcoin network?

If we define an ad-hoc network as follows: "An ad hoc network is a network that is composed of individual devices communicating with each other directly." [1] ad-hoc networks do not rely on ...
0
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1answer
50 views

How do nodes communicate over Lightning network?

I read the following article and watched below video. https://medium.com/@melik_87377/lightning-network-enables-unicast-transactions-in-bitcoin-lightning-is-bitcoins-tcp-ip-stack-8ec1d42c14f5 https:/...
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1answer
49 views

“state channel” v.s “micro-payment channel” : are they the same?

We use "micro-payment channels" such as "Bitcoin Lightning Network" or "Duplex Micro-Payment Channels" for saving transaction fee, accelerating payments, supporting better micro-payment and scaling ...
3
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1answer
123 views

How does channel factory act?

I am reading paper named "Scalable Funding of Bitcoin Micropayment Channel Networks". If Alice, Bob, and Charlie created a channel factory, I thought that only these three people can make a payment ...
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2answers
56 views

How bittrex and other bitcoin trading websites send bitcoin to their one user to another instantly and without any fees?

When user-1 post an order of selling btc, user-2 comes and fulfill that order, we noticed that instantly user-2 receive btc in his/her wallet. My question is how is it possible to send btc instantly ...
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0answers
40 views

Lightning Network: why should the receiver send an equal payment to the sender with the same hash?

From the whitepaper, page 46, chapter 8.3 "Clearing Failure and Rerouting": If a transaction fails to reach its final destination, the receiver should send an equal payment to the sender with the ...
2
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2answers
205 views

If lightning network transactions are “off chain”, can we still see the transaction history then?

If the lightning network is a off chain system. Are the transactions private or public? And does that mean once you send bitcoin to a lightning network address, it can possible get hidden in a payment ...
1
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1answer
200 views

How does LN solve the liquidity problem?

How do nodes in LN manage to provide 100% collateral to all the outgoing channels? I attached an example below that details my confusion about the lack of liquidity.
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2answers
301 views

Off chain transactions

How can you create an off chain transaction and broadcast it? Is it the same as creating a non standard transaction or different?
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1answer
42 views

How do offchain transactions get validated/confirmed whilst using Lightning network?

How do offchain transactions get validated whilst using Lightning network?
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3answers
1k views

How can I avoid paying transaction fees?

A bitcoin transaction requires paying a fee to the network, and that fee changes depending on network congestion. During busy times the fee rate may increase substantially, so how can a user avoid ...
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0answers
59 views

Bitcoin blockchain to directed acyclic graph two-way peg

Are there any known technical or security related reasons why it would not be possible or safe to implement a two-way peg between the Bitcoin blockchain and a directed acyclic graph of bitcoin ...
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2answers
2k views

Off-chain transactions with Coinbase

Recently I created an account/wallet on coinbase.com. Then I transferred my BTCs I already had from blockchain.info to the wallet on Coinbase. A bit later I bought some new bitcoins directly from ...
4
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1answer
223 views

Non-bidirection payment channels for lightning network

I am trying to understand the technology behind LN and similar concepts. As I understand it, LN is a network of bidirectional channels, which are created with some limited capacity, within which the ...
2
votes
2answers
346 views

How are off-chain transactions handled by bitcoind?

I'm trying to figure out how transactions are actually handled by bitcoind. I'm looking at the full list of RPC methods and there are missing documentation for some most interesting methods. move I ...
2
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1answer
183 views

Offchain transactions

New here, but have some intermediate knowledge of Bitcoin and Blockchain. My question is in regards to the off-chain transactions. For example, today I paid a coffee shop using my Coinbase wallet. I ...
7
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2answers
188 views

What technical reasons exist for off-chain transactions?

I'm trying to get a grasp on off-chain transactions, as they seem more common than I initially realized but they are not the way that I originally perceived bitcoin being used as an outsider looking ...
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2answers
753 views

How do off-chain transactions get back on-chain?

I've searched in vain, but not been able to find a detailed explanation of how off-chain transactions work. If I have some BTC on the public blockchain and I want to transfer some of it to someone's ...
2
votes
1answer
625 views

What happens to off chain transactions when the blockchain is reorganised?

Many companies seem to use off chain transactions to transfer bitcoins between their own customers. What happens when a side chain gains dominance and no longer contains a block with the underlying ...
0
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1answer
138 views

Can I cancel an offline transaction with this approach? (opposite of nLocktime)

I would like to cancel a transaction I sent offline, and am looking for ways to prevent it from being accepted by the network. Will the Bitcoin client prohibit the entire Tx if there is even on input ...
2
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1answer
721 views

What is a UTX 0 Proof? (as discussed in this video)

This video discusses how off chain transactions can be accomplished as an alternative to increasing the block size. At the 21:25 marker he discusses "UTX 0 Proofs". What is that?
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1answer
109 views

is it currently possible in the Bitcoin blockchain to send coins to an address only after two parties sign messages signaling the funds to be released

Like the question states, is it currently possible in the Bitcoin blockchain to send coins to an address, but have the transaction written into a block or validated only after two parties sign ...
4
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3answers
2k views

How do off chain transactions work?

Some wallets (such as inputs.io) claim to provide off-chain transactions. Note: I have not used that wallet yet. Say if I have a Bitcoin address A in such a wallet provider and send 1 Bitcoin to ...