Blockchain , the bitcoin-centric startup, recently offered an update on its Thunder Network on-chain settlement, having released the alpha version in May. Blockchain released the alpha version of its Thunder Network as a payments channel to be the first usable implementation of the Lightning network for off-chain bitcoin payments that settles back to the main bitcoin blockchain, CCN previously reported. The payment technology prototype is described by Blockchain as a “way to send money ‘off-chain’ to other parties in a trustless manner based on the Lightning network.” Blockchain claims Thunder has the potential to facilitate secure, trustless and instant payments. It can unleash the power of micro-transactions to allow the bitcoin network to handle heavy loads and to increase user privacy. In its recent update, Blockchain noted in a blog that Thunder payments process without touching the bitcoin blockchain, provided those few that make it into the blockchain get handled correctly. Users must be assured those payments that make it into the blockchain are valid. Two-Layer Payment Approach Thunder uses a two-layer payment approach called dual-tx. Deploying dual-tx has proven more difficult than expected. In existing implementations, refunds can take more than a month. The user, however, cannot stay offline for more than a day. Take a two-week vacation, and the refund can take more than a year. Dual-tx adds a second layer between claiming a payment and broadcasting the settlement, allowing clear separation of the process of claiming a payment from waiting out the delay revocation. Should the receiver seek to redeem a payment, he must broadcast the second transaction, allowing them to claim the output of the second-tx following the revocation delay. Should the user cheat, the counterparty can claim the funds even from the second layer. The second transaction serves as a safety net. Going through […]
