Fairgate Unveils OTS-PC: Simpler, Safer Lightning Channels
Fairgate introduced OTS-PC (One-Time Signature Payment Channels), a novel Lightning-compatible channel design that replaces complex revocation schemes with simple hash-based one-time signatures. Developed by Sergio Lerner, OTS-PCs simplify channel state management, reduce watchtower storage, and enhance privacy.
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OTS-PC: Simplifying Lightning Channels with One-Time Signatures
Payment channels are at the heart of Bitcoin scalability. Over the years, designs like Poon-Dryja, Eltoo, and Outpost have progressively refined how two parties can exchange funds instantly and privately, without congesting the blockchain. Yet, these systems still carry trade-offs: complex channel states, storage-heavy watchtowers, and incomplete privacy.
The new OTS-based Payment Channels (OTS-PCs), developed by Fairgate, propose a streamlined solution built on hash-based One-Time Signatures (OTS). This approach replaces the intricate revocation mechanisms of current Lightning channels with a simple yet secure commitment structure based on sequence numbers.