Question

How does the concept of "submarine swaps" enable trustless exchange between the Lightning Network and on-chain Bitcoin?

Answer 1

Submarine swaps allow for trustless atomic swaps between the Lightning Network and on-chain Bitcoin by enabling users to swap off-chain Lightning Network assets for on-chain Bitcoin without the need for a trusted third party. This process involves creating an invoice on the Lightning Network that can be paid with off-chain funds, which triggers the release of on-chain_

Answer 2

"Submarine swaps" allow for trustless exchange between the Lightning Network and on-chain Bitcoin by enabling users to atomically swap off-chain Lightning Network funds for on-chain Bitcoin without the need for a trusted third party. This is accomplished by creating a smart contract that ensures both parties fulfill their end of the exchange simultaneously, maintaining security and eliminating the need for trust in the transaction process.

Answer 3

Submarine swaps enable trustless exchange between the Lightning Network and on-chain Bitcoin by allowing users to swap their off-chain Lightning Network funds with on-chain Bitcoin without the need for a trusted intermediary. This is done by utilizing hash time-locked contracts (HTLCs) that ensure the swap is executed securely and fairly. The parties involved in the swap do not need to trust each other to complete the transaction, as the smart contract ensures that the swap is either successfully completed by both parties or cancelled and reverted to the original state. This mechanism enables seamless and secure exchange between the Lightning Network and on-chain Bitcoin while maintaining the principles of decentralization and trustlessness.