niftynei() 🇺🇸💸🧡
· 113w
covenants scale bitcoin by making promises to pay you. typically these promises are ones that you can verify because they’re written into the chain
those promises risk becoming “unenforceable” ...
lightning protocol devs are again at a pretty prime spot wrt understanding these challenges and trade offs, as theyve been actively building systems with these constraints for the past number of years
The LN network is a very rudimentary covenants system, no body likes it when they have to pay to resolve those covenants onchain (force closes)
and LN has a pretty easy setup for funding that onchain unrolling, given that there’s only two parties and the “liability” of going to chain is (or at least historically was) fully funded