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Topics: Add Swap-in Potentiam (SIP) #1538
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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 that facilitates the immediate transfer of confirmed | ||||||
on-chain Bitcoin to the Lightning Network. It reduces trust requirements compared to other | ||||||
instant channel opening methods like 0-conf channels by pre-committing to a Lightning Service | ||||||
Provider (LSP) and incorporating a timeout mechanism for unilateral access. | ||||||
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## 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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- title: Swaproot | ||||||
link: https://acinq.co/blog/phoenix-swaproot | ||||||
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- title: Payjoin-in-Potentiam | ||||||
link: https://delvingbitcoin.org/t/payjoin-in-potentiam-externally-fund-an-lsp-channel-open-with-one-transaction/749 | ||||||
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--- | ||||||
Swap-in potentiam (SIP) differs from typical HTLC-based swaps by | ||||||
allowing for a pre-commital stage. This allows for; reusable swap addresses, | ||||||
immediate transfers to lightning, and reduced trust requirements compared to | ||||||
0-conf channels. | ||||||
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In this scheme, the reusable swap address is a contract between Alice and Bob | ||||||
There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. If the "reusable" aspect of the address is important, it should perhaps be further elaborated. There was a problem hiding this comment. Choose a reason for hiding this commentThe reason will be displayed to describe this comment to others. Learn more. Elaborated |
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that allows for two spend paths; Alice and Bob cosign, or Alice | ||||||
can spend unilaterally after a timeout. | ||||||
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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, and a variation called swaproot has been implemented in Pheonix wallet. | ||||||
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{% include references.md %} |
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How about: