How Does a "Hash Time-Locked Contract" (HTLC) Facilitate Trustless On-Chain Settlement? ⎊ Path

How Does a “Hash Time-Locked Contract” (HTLC) Facilitate Trustless On-Chain Settlement?

An HTLC is a type of smart contract that requires the recipient to provide cryptographic proof, a "pre-image," of a secret within a specified time limit to claim the funds. If the time limit expires, the funds are returned to the sender.

This mechanism enables secure, trustless, and atomic swaps of assets across different blockchains.

How Does the Concept of ‘Atomic Swaps’ in Crypto Relate to the FOK Principle?

Define “Atomic Swap” and Its Role in Trustless Cross-Chain Trading

How Do Atomic Swaps Facilitate Trustless Cross-Chain Token Transfers?

How Do Hash Time-Locked Contracts (HTLCs) Ensure Trustlessness in an Atomic Swap?

How Do Hash-Based Commitments, like Hash Time-Locked Contracts (HTLCs), Facilitate Cross-Chain Atomic Swaps of Options?

How Does an Atomic Swap Differ from Using a Centralized Crypto Bridge Service?

How Does the Concept of ‘Hash Time-Locked Contracts’ (HTLCs) Facilitate Atomic Swaps?

What Are the Technical Limitations of Implementing Atomic Swaps for Complex Derivatives?

Glossar

HTLC

Definition ⎊ HTLC is the acronym for Hash Time Lock Contract, a cryptographic primitive essential for enabling secure, non-custodial exchanges across different blockchain environments or for conditional settlement in complex decentralized financial instruments.

Trustless

Architecture ⎊ The concept of trustlessness, within cryptocurrency, options trading, and financial derivatives, fundamentally redefines reliance on intermediaries.