Scaling with State Channels
Last updated
Last updated
At network scale, solvers need to pass millions of transactions between each other.
Blockchain doesn't allow this, but state channels allow this as in a bilateral relation, a consensus is not needed while there are no disputes.
State channels bring transaction privacy, as only the total state channel is revealed to the blockchain outside disputes.
In case of dispute, each transaction is settled on-chain, and total collateral requirements are verified based on normal bilateral transactions.