Quote from: d5000 on August 02, 2018, 08:21:47 PM

I would be grateful for an example for a higher level penalty implementation understandable by someone who has no IT degree Wink

Decker posted this explanation at Reddit, but I need some clues still:

Quote

Re-introducing the asymmetry at a higher level allows us to select how much of the channel we'd like to set aside for a punishment for example. Have the reserve split out into a separate output of the settlement transaction and encumbering it with a shachain or elkrem preimage. This is similar to the current mechanism of ensuring that all parties have some skin in the game.

The second sentence - the core of his proposal - is difficult for me to understand. Embarrassed

Currently, the transaction which founds the channel contains only one output - a multi-signature address which is in control of both parties. The idea is to use only a part of the founding transaction as a punishment. The first transaction would contain two outputs - one with the funds used on the Lightning Network and the second released only if the other person attempts to cheat. Shachain or elkrem preimage make sure that the reserve isn't spent improperly. You can think of the reserve as a security deposit.