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Questions tagged [off-chain]

Transfers that don't appear on the blockchain.

Off-chain payments are transfers within a service and do not appear on the blockchain, i.e. they are not visible to the complete network. These occur for example when funds are sent from one to another user of the same online wallet, or when balances are adjusted within an exchange service at the time when trade offers are matched.

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Non-bidirection payment channels for lightning network

I am trying to understand the technology behind LN and similar concepts. As I understand it, LN is a network of bidirectional channels, which are created with some limited capacity, within which the channel can operate. So, we can have Alice…
Wapac
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What technical reasons exist for off-chain transactions?

I'm trying to get a grasp on off-chain transactions, as they seem more common than I initially realized but they are not the way that I originally perceived bitcoin being used as an outsider looking in. What technical advantages exist for off-chain…
Hao Cheng
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How can I avoid paying transaction fees?

A bitcoin transaction requires paying a fee to the network, and that fee changes depending on network congestion. During busy times the fee rate may increase substantially, so how can a user avoid paying these fees in the first place? Is there a…
chytrik
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Is it possible to splice a new participant into a LN channel factory?

I am reading paper named "Scalable Funding of Bitcoin Micropayment Channel Networks". If Alice, Bob, and Charlie created a channel factory, I thought that only these three people can make a payment channel within themselves. However, the paper says…
xiaofo
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Off-chain transactions with Coinbase

Recently I created an account/wallet on coinbase.com. Then I transferred my BTCs I already had from blockchain.info to the wallet on Coinbase. A bit later I bought some new bitcoins directly from Coinbase with my credit card and I expected that I'm…
user54532
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How do off chain transactions work?

Some wallets (such as inputs.io) claim to provide off-chain transactions. Note: I have not used that wallet yet. Say if I have a Bitcoin address A in such a wallet provider and send 1 Bitcoin to address B from the same wallet provider, what will…
Jus12
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How can the segwit witness data be "off-chain"? What does it really mean?

I have several questions regarding the segwit witness data. My current understanding is as follows. Before segwit, the witness data was part of the input that the user had to provide so that they could spend an UTXO. The witness data is the digital…
Pascal Bergeron
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Where off-chain transactions are registered afterwards?

Reading the questions and answers on this StackExchange, i've learned that into Exchanges there's no transactions over public blockchains being performed, the funds are exchanged among accounts into the Exchange and a database seems to register and…
Emerson Oliveira
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If lightning network transactions are "off chain", can we still see the transaction history then?

If the lightning network is a off chain system. Are the transactions private or public? And does that mean once you send bitcoin to a lightning network address, it can possible get hidden in a payment channel? Or is that not possible?
Patoshi パトシ
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Is one lightning network channel equal to one transaction?

I understand how a lightning network channel is like opening a bar tab, where you can make multiple transactions off-chain between two parties, and closing the channel puts the total tab on-chain. However, if I'm visiting 20 different stores and…
jarbus
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How are off-chain transactions handled by bitcoind?

I'm trying to figure out how transactions are actually handled by bitcoind. I'm looking at the full list of RPC methods and there are missing documentation for some most interesting methods. move I know there are two methods of moving bitcoins…
Robert Wood
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Offchain transactions

New here, but have some intermediate knowledge of Bitcoin and Blockchain. My question is in regards to the off-chain transactions. For example, today I paid a coffee shop using my Coinbase wallet. I scanned and paid. The transaction pended for about…
Clon3
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What happens to off chain transactions when the blockchain is reorganised?

Many companies seem to use off chain transactions to transfer bitcoins between their own customers. What happens when a side chain gains dominance and no longer contains a block with the underlying transaction? Let me explain my question with an…
Dan
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What is a UTX 0 Proof? (as discussed in this video)

This video discusses how off chain transactions can be accomplished as an alternative to increasing the block size. At the 21:25 marker he discusses "UTX 0 Proofs". What is that?
makerofthings7
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How to identify off-chain related transactions on the Bitcoin network

My understanding is that if someone wants to sell and buy Bitcoin via off-chain transaction, that person needs to set up a payment channel(funding transaction) first and it will recorded on the blockchain. Similarly, when that person closes the…
Sarah Grimes
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