2 upvotes, 1 direct replies (showing 1)
View submission: Lightning Network Megathread
Cross chain swaps would happen by transacting on two channels, one backed on either chain. In the simplest set up you would share two channels with a single partner, one BTC and one e.g. LTC. You issue an HTLC on the BTC channel requesting some amount of LTC be credited on the LTC channel. The partner issues an HTLC on the LTC channel requesting the secret required to complete the BTC contract. You claim the LTC by releasing that secret, which in turn allows the partner to claim the BTC. Swap complete.
This could be extended with any amount of routing before or after the swap, just so long as you eventually reach a node which has reachable channels for the coins you're trying to swap. It could even go further and involve a swap to some intermediate coin before swapping to the desired currency.
Comment by cumulus_nimbus at 03/01/2018 at 10:55 UTC
1 upvotes, 0 direct replies
sounds like bisq would be in the best place to implement such a feature - that would be great and kill shapeshift within a few months