diff --git a/ch12.asciidoc b/ch12.asciidoc index b86a520c..fe52b66a 100644 --- a/ch12.asciidoc +++ b/ch12.asciidoc @@ -227,7 +227,7 @@ Payment channels are part of the broader concept of a _state channel_, which rep ==== State Channels—Basic Concepts and Terminology -A state channel is established between two parties, through a transaction that locks a shared state on the blockchain. This is called the _funding transaction_ or _anchor transaction_. This single transaction must be transmitted to the network and mined to establish the channel. In the example of a payment channel, the locked state is the initial balance (in currency) of the channel. +((("payment (state) channels", "terminology")))A state channel is established between two parties, through a transaction that locks a shared state on the blockchain. This is called the _funding transaction_ or _anchor transaction_. This single transaction must be transmitted to the network and mined to establish the channel. In the example of a payment channel, the locked state is the initial balance (in currency) of the channel. The two parties then exchange signed transactions, called _commitment transactions_ that alter the initial state. These transactions are valid transactions in that they _could_ be submitted for settlement by either party, but instead are held off-chain by each party pending the channel closure. State updates can be created as fast as each party can create, sign, and transmit a transaction to the other party. In practice this means that thousands of transactions per second can be exchanged.