In the core network of bitcoin began testing technology Submarine Swaps, which gives the possibility of conducting transactions between onchan addresses and network Lightning Network. This writes for Bitcoin Magazine.
As you know, for making payments in a network Lightning Network Protocol of the second layer for instant and cheap transactions – users first need to replenish the Lightning channels. This process, however, shared users of a core network of bitcoin from those who use LN, because up to now, direct payments between the primary network and LN was impossible.
This problem is solved by the technology of Submarine Swaps, providing trustless transactions between the Lightning-addresses and core network addresses of bitcoin in both directions. It lead developer Alex Bosworth.
I added support for creating, updating, and signing to my node.js PSBT 174 BIP implementation and it now passes every test vector listed in the BIP. https://t.co/V4prukxH04
BIP 174 is designed for multi-sig, but I hope to extend the format with new keys to support HTLC style PSBTs
— Alex Bosworth ☇ (@alexbosworth) 29 August 2018
Employing the same cryptographic techniques that are used in the Lightning Network, the technology of Submarine Swaps imply require the trust of the mediator between the Lightning channel to the main network. In the role of a mediator is a special program provider for exchange, which will be responsible for the successful completion of a transaction.
For example, if the user Lightning Network wants to send funds to the wallet of a core network, the mediator can translate them in your own wallet, however, will happen only in case if he sends a transaction with the same amount to onchain wallet. And works the same process when sending money from the core network to the Lightning-wallet.
“This can be used for many purposes. For example, the exchange wants to pay Lightning-invoice, but the funds in the Lightning channel or the necessary purse it does not. In this case she can ask for the help that has everything you need and the assistant will receive the funds on your oncein-wallet,” said Alex Bosworth.
He also suggests that in the future this feature may be built into wallets, allowing users to the core network, “who don’t even know about Lightning”, to carry out transactions with any users.
It is curious that the user and the provider of exchange may be one and the same person.
“In this regard, everything is flexible. Provider of exchange may be third party, but they can be myself” — said the developer.
He also believes that the reward for the transaction will be enough incentive to convince users to put their bitcoins to work, and this in turn will help to ensure sufficient liquidity.
“This is an operation with low risk, and can either leave your coins lie, or I can use them to exchange and obtain certain profit,” he added.
The technology concept was originally proposed that Lightning Labs Olaoluwa Osuntokun, but Alex Bosworth came to the same idea independently.
i call these “submarine swaps” ⚓I🤣
if you take a look at the `contractResolver` struct in #lnd it’s pretty straight forward to add an RPC to create an outgoing contest that’ll automatically allow the receiver to fully resolve atomically
— Olaoluwa Osuntokun (@roasbeef) 16 February 2018
According to him, now the technology is at its very early stage, but already tested in the core network of bitcoin, to which he invites.
Meanwhile, there are first examples of successful transactions with Submarine Swaps. In particular, this was reported by an early follower of bitcoin and investor Dennis Porto, who bought from their ocean wallet stickers in the store Blockstream and the pixels on the website Satoshi’s Place.
Sent my first payment with the lightning magic on submarine swaps (thanks @alexbosworth) and the https://t.co/05cypjqq41 wallet! Awaiting my @Blockstream stickers 🛰 app and then on to @LightningK0ala’s https://t.co/1MFTYe77yi….
— Dennis Porteaux (@DennisPortoMD) 29 August 2018
Somewhat earlier, Litecoin Creator Charlie Lee announced the presentation of Alex Bosworth a report on Submarine technology Swaps at the start of September 14 in San Francisco first ever Litecoin Summit.
Excited to hear @alexbosworth speak at the Summit on submarine Litecoin swaps and other cool new LN technologies. ⚡
For Bitcoin maximalists, don’t let the name fool you Litecoin Summit. I bet some speakers will spend more time talking about Bitcoin. 😮https://t.co/4bcp61lCsB https://t.co/507Rd63Voq
— Charlie Lee [LTC⚡] (@SatoshiLite) 26 August 2018
Also Charlie Lee added that the name of Litecoin Summit should not mislead the bitcoin maximalist, because, as he convinced some speakers will certainly be more to talk about the first cryptocurrency.
We will remind, earlier this week the developer and Creator of the project Bitrated Nadav of ivgi presented a minimalist graphical user interface (GUI) Spark. As the backend uses the Spark solution c-lightning, which is an implementation of the Protocol Lightning Network from Blockstream.
Also, this decom in the official repository of bitcoin, a new proposal to improve network BIP174, which describes the support of offline transactions.