BA-11 · Expert

Lightning, channels, DLCs, and layered systems

Understand off-chain enforcement and its on-chain escape hatches.

Follow these 8 lessons in order, or choose the topic you need. Each lesson combines an explanation, a worked example and practice inside the Guild.

  1. Payment channels

    Pre-signed state updates let parties transact off chain while retaining an enforceable on-chain settlement path.

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  2. Lightning commitments

    Revocable commitments, HTLCs, timelocks, and justice or replacement mechanisms manage unilateral closes.

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  3. Routing and liquidity

    Multi-hop payments use onion routing and conditional transfers but depend on directional channel liquidity.

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  4. Watchtowers and backups

    Offline protection and channel-state recovery address different failure modes and have distinct trust assumptions.

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  5. DLCs

    Discreet Log Contracts use oracle attestations and adaptor signatures so outcomes settle without revealing the full contract logic on chain.

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  6. Federations and sidechains

    Pegged systems trade different custody, consensus, and exit assumptions for additional functionality.

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  7. Ark and shared UTXOs

    Emerging protocols explore coordinated UTXO ownership and efficient exits with new availability assumptions.

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  8. Layer comparison

    Experts compare custody, unilateral exit, data availability, capital efficiency, privacy, and failure recovery rather than relying on labels.

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