👉 The Simple Lightning Newsletter - Payment Timeouts in Payment Channels - #3 Timelocks

Payment Timeouts in Payment Channels - #3 Timelocks

Timelocks establish timeouts for payments and enable trustless escrow services in the Lightning Network.

HTLCs are hashlocks + timelocks, combined with an OR condition. The funds in each channel can only flow one way, forward to the recipient if hashlock is unlocked or backward, back to the sender if the timelock times out.

  • Timeouts with Timelocks:
    • So, why do we need Timelocks in multi-hop payments?
    • Without timelocks, payments can get stuck.
  • What are Timelocks?
    • How do timelocks “unstick” payments?