It certainly looks interesting, I find it's a clever solution to the bottleneck issues on the network.

Every chain gets to keep its ledger functional, with channels taking care of offloading transactions and even serving as decentralized exchanges in a way.

They tested it between Litecoin and Vertcoin a few weeks ago, Charlie Lee tweeted about it, it was a splendid success, both communities were pumped haha!

I'm going to download the testnet client myself later tonight and give it a spin, so thanks for this update!