Quote from: turvarya on November 10, 2015, 02:47:46 PM

1. You give a fixed amount, of how much you would spend max, say for Coffee at Starbucks. There is some mutlisig(that means neither you, nor the sender can do anything alone) and n-LockTime(which means you just get all back, if nothing happens)-magic. That's called a channel.
2. Now, you buy Coffee. You give Starbucks the transaction, which they don't put on the blockchain, since they know you will come again.
3. Next day, you buy another Coffee. You give Starbucks a new transaction, with money for both coffees(note, that they can not execute both transactions).
4. You realize that Starbucks is shitty coffee and never come back to them again. After a while, they see, that you are not coming back and just execute the last transaction you gave.
5. After n-LockTime is reached, the remaining money in this channel is send back to you.

So, this is the same as the ad-sig campaign example, but instead of paying someone every time they show your banner, you pay them every time they give you a coffee. Got it.

Does anyone know if you need any 'new' op-codes to get LN to work ? Does the refund txn require OP_CHECKLOCKTIMEVERIFY to work, as with other refund uses ?

..

I see now, that as long as you transact with someone MORE than once, especially for small amounts, LN can be very useful.

Although, it seems, you do need to lock up the funds you wish to use for the duration of the .. err.. 'room'. ( I think the room metaphor is quite simple to explain to the 'layman'..

)