Commerceblock has released a new atomic swap protocol for use with statechains on their Mercury Layer protocol. The HSM server has introduced functionality to support atomically swapping two statechains, as well as enforcing an atomic exchange of a statechain for a Lightning payment. This is the first example of concretely defined and built interactions between statechains and the Lightning Network. Synergy between both protocols has been postulated since the concept of a statechain was originally proposed by Ruben Somsen, specifically as a way to solve the limitation of having to transfer a whole statechain UTXO at once.

Basic Statechain Swaps

In order to support the new swap protocols,…

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