delvingbitcoin

A Lightning Network of multi-party mechanisms

A Lightning Network of multi-party mechanisms

Original Postby ZmnSCPxj

Posted on: September 25, 2024 02:22 UTC

The discussion revolves around the complexities and potential drawbacks of utilizing constructs within blockchain technology, specifically concerning on-chain bandwidth and the costs associated with unilateral exits.

A significant point of consideration is the impact of increasing participants within these constructs, which inherently raises the likelihood of a force-close scenario. This probability is mathematically represented as 1 - (1 - P(c))^n, where P(c) denotes the average chance of a force-close at any given time, and n represents the number of participants.

Further examination highlights HTLCs (Hashed Timelock Contracts) as a common catalyst for force-closing due to their nature in public routing scenarios. In instances where outgoing HTLCs are unresolved, either through failure to confirm on-chain or accidental disconnection (e.g., loss of power), incoming HTLCs must also be dropped on-chain. This event typically results in the entire hosting mechanism being force-closed, affecting all participants involved. Such occurrences underscore the inherent brittleness of multi-party mechanisms compared to two-party channels.

Lastly, the concept introduces a method to gauge the fragility of N-party mechanisms by calculating the uptime of random nodes. This is achieved by attempting connections to various nodes, determining the success rate, and using this data to infer the likelihood of an HTLC timing out due to node unavailability. Through this approach, a more quantifiable understanding of the risks and operational stability of multi-party systems in blockchain networks can be attained, offering insight into their scalability and efficiency challenges.