That's an interesting idea, can't wait for the paper to come out. Compared to my scheme of Ripple-like IOU network with point-to-point joint escrow (https://www

That's an interesting idea, can't wait for the paper to come out. Compared to my scheme of Ripple-like IOU network with point-to-point joint escrow (https://www.mail-archive.com/bitcoin-development@lists.sourceforge.net/msg07006.html https://www.mail-archive.com/bitcoin-development@lists.sourc...) here are pros/cons (to the best of my understanding so far): Pros: 1. They already have a paper and I don't :-) 2. No need for extra capital lock up between nodes to cover bidirectional IOUs. Cons: 1. Channels can be "closed" any time forcing everyone in the chain (could be 7-10 nodes) to make a BTC tx whether they really want it or not. 2. Necessary timeouts require channels to be closed after some time, while in theory some of them can be kept open indefinitely. In my scheme, interior pairs of nodes can pay each other accumulated transaction fees in separate transactions whenever they want without affecting anyone.