Can HTLCs Prove Solvency in Lightning Network?

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alexsatNewbie
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#1May 3, 2025, 02:43 PM
So, I was thinking about how Lightning Network doesn’t really have a public balance like Bitcoin does. I mean, in regular blockchain, you can see everything, but not here. How can someone prove they have a certain amount of BTC when it’s all private? 🤔
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lonecobraSenior Member
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#2May 3, 2025, 07:44 PM
Interesting thought about using Hash Time-Locked Contracts (HTLCs) for solvency proof. But how do we make sure both parties do their part? Maybe we could use multisig to link the transactions. Like, both A and B would have to approve the deal, right? Plus, a timeout feature could protect against scams. If things aren’t done in time, funds go back.
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0xDefiFull Member
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#3May 3, 2025, 09:55 PM
You’re onto something, but LN kinda complicates this. The preimage doesn’t really lock the two payments together. If A pays first, B might just bail. And if B goes first, A could just take the funds. There’s no built-in way for both to succeed or fail at the same time, which is kinda a big deal.
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alexsatNewbie
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#4May 4, 2025, 12:43 AM
Yeah, I thought multisig could work too at first, but then I realized it wouldn’t help much. LN is about punishing people for trying to empty channels. But a verifier (B) might not even have balance or could move their funds away before A sends. So A could try to close the channel but really, what’s the point?
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alexsatNewbie
Posts: 278 · Reputation: 15
#5May 4, 2025, 07:00 AM
I see it differently. LN relies on knowing if routes are valid, right? If you can trust a verifier to check balance, they could probe payments through their channel. It’s kinda like proving solvency on-chain, where you check if the funds are there before moving.
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