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--- | ||
title: Swap-in Potentiam (SIP) | ||
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## Optional. test Shorter name to use for reference style links e.g., "foo" | ||
## will allow using the link [topic foo][]. Not case sensitive | ||
shortname: swap-in potentiam | ||
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## Optional. An entry will be added to the topics index for each alias | ||
#aliases: | ||
# - Foo | ||
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## Required. At least one category to which this topic belongs. See | ||
## schema for options | ||
categories: | ||
- Contract Protocols | ||
- Lightning Network | ||
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## Required. Use Markdown formatting. Only one paragraph. No links allowed. | ||
## Should be less than 500 characters | ||
excerpt: > | ||
**Swap-in-Potentiam (SIP)** is a protocol designed to enable the immediate transfer | ||
of already-confirmed onchain Bitcoin funds to the Lightning Network, lowering | ||
trust requirements by precommitting to an LSP and incorporating a timeout | ||
mechanism for unilateral access. | ||
## Optional. Produces a Markdown link with either "[title][]" or | ||
## "[title](link)" | ||
primary_sources: | ||
- title: Moving Onchain Funds "Instantly" To Lightning (Jesse Posner, ZmnSCPxj) | ||
link: https://lists.linuxfoundation.org/pipermail/lightning-dev/2023-January/003810.html | ||
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- title: LSPS C= Extension, Swap-in-Potentiam | ||
link: https://github.com/ZmnSCPxj-jr/swap-in-potentiam/blob/master/doc/swap-in-potentiam.md | ||
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## Optional. Each entry requires "title", "url", and "date". May also use "feature: | ||
## true" to bold entry | ||
optech_mentions: | ||
- title: "Swap-in Potentiam Announced" | ||
url: /en/newsletters/2023/12/20/#swap-in-potentiam | ||
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- title: Non-interactive LN channel open commitments | ||
url: /en/newsletters/2023/01/11/#non-interactive-ln-channel-open-commitments | ||
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## Optional. Same format as "primary_sources" above | ||
see_also: | ||
- title: Hash Time Locked Contracts from Bitcoin Wiki | ||
link: https://en.bitcoin.it/wiki/Hash_Time_Locked_Contracts | ||
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- title: Swap-in potentiam for Phoenix | ||
link: https://gist.github.com/t-bast/5fd89979a8088b99d0b95c124902aa56 | ||
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--- | ||
SIP is a [submarine swap](https://bitcoinops.org/en/topics/submarine-swaps/) | ||
mechanism that differs from typical purely HTLC based submarine swaps by | ||
allowing for a pre-commital stage. This allows for reusable swap addresses and | ||
more flexibility with onchain funds. | ||
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In this scheme, the reusable swap address is a contract between Alice and Bob | ||
that allows for two spend paths; Alice and Bob cosign, or timeout before Alice | ||
can spend unilaterally. | ||
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Once the swap address is funded and confirmed, Alice can choose one of the | ||
following options; swap the funds into a new or existing lightning network | ||
channel with the help of Bob, or send the funds to a new onchain address with | ||
the help of Bob. Alice also has the third option of waiting for the recovery | ||
timeout if Bob is offline or uncooperative. | ||
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SIP is primarily geared towards mobile users who may go offline for extended | ||
periods of time. The main trick of SIP is splitting the confirmation | ||
requirements between a pre-commital address and a commited address, allowing | ||
for the immediate usage of funds when the mobile user comes online. |