THE IMPORTANCE OF HASH TIME (HTLC) BLOCKS IN BITCOIN

Bitcoin architecture depends a lot on Hash time blocks (HTLC), a critical component that allows safe and decentralized payment transactions. In this article, we will deepen the concept of HTLC, its limitations and what happens when the value of the time blockade of hash falls below the dust limit.

What are time hash locks (HTLC)?

Hash time blockages are a mechanism used to create a safe and confidence way so that Bitcoin network nodes agree with the amount of work needed to validate a transaction. HTLC is a combined lock that requires both parties to commit to certain conditions before releasing their corresponding transaction exits.

How does an HTLC work?

Here is a simplified overview:

• A knot proposes a transaction and transmits it to the network.

• Other knots check the transaction, including checking and valid inputs and outputs.

• Once verified, the proposing knot creates a hash of the transaction data.

• The proposed Hash time blockade value (HTL) is calculated based on transaction input parameters, such as transaction rates and time.

• Another node generates a corresponding value of hash time block (HTL), which depends on the HTL value created by another node, called “root”.

• Both nodes find that their proposed HTL values ​​are correct and agree with the amount of work needed to validate the transaction.

What happens if the HTLC value is less than the dust limit?

The value of the hash time lock (HTL) represents a specific amount of work that needs to be done by the network before release corresponding exits. If the HTL value drops below the dust limit, which will be set at 6.25 BTC, the transaction will fail. This means that the node proposing cannot create an HTLC output because the transaction would rarely be propagated.

Why is this a problem?

If the HTL value is too low, it will be increasingly difficult to propagate the transaction, as the nodes are less likely to accept it. In turn, this can lead to congestion on the network and reduced scalability. Also, if nodes do not validate transactions due to insufficient HTL values, they can abandon their deposits or leave the network, further exacerbating the problem.

Logic tells me that you cannot create an output HTLC because the transaction would rarely be propagated

This is a critical limitation of Bitcoin’s architecture. The HTLC mechanism depends on the propagation and validation of transactions by us in the network. If this fails, it means that there are no reliable parts willing to accept the transaction and therefore it will not propagate.

How do you make multi-hop payments?

To overcome this limitation, new payment protocols were developed, such as Lightning Network (LN). LN allows faster and more secure transactions, allowing us to create “payment paths” between different locations on the network. These payment paths are checked through a series of complex calculations and use HTLC values ​​to ensure the transaction is valid.

In conclusion, Hash’s time blockages play a crucial role in Bitcoin’s architecture, ensuring the safety and integrity of transactions. However, if the HTL value falls below the dust limit, it will become increasingly difficult for us to propagate transactions, which can lead to congestion on the network. New payment protocols, such as Lightning Network, aim to mitigate this problem, allowing safe and fast payments.