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

Requires cryptographic proof of a secret within a time limit to claim funds, enabling secure, trustless, atomic cross-chain swaps.
Greeks.Live14.11.25

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.

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