Anchor Outputs
Special outputs in Lightning commitment transactions that enable dynamic fee bumping during force closes, solving fee volatility issues in channel disputes.
Asset-Referenced Tokens (ARTs)
A MiCA-defined category of crypto-assets that maintain stable value by referencing multiple currencies, commodities, or other assets, subject to strict EU reserve and governance requirements.
Atomic Multipath Payments (AMP)
A Lightning Network payment protocol that splits large payments across multiple paths using cryptographic secret sharing, ensuring all parts arrive or none do.
Autoloop
An automated liquidity management system that uses rules-based submarine swaps to maintain optimal channel balances on Lightning Network nodes.
Channel Factory
A proposed multi-party channel setup that enables efficient batch opening and closing of Lightning payment channels, significantly reducing on-chain footprint and improving scalability.
Channel Reserve
The minimum balance that must be maintained in a Lightning Network channel to ensure both parties can cover potential closure fees and prevent gaming the system.
Chantools
A command-line toolkit for Lightning Network channel recovery and troubleshooting, used to rescue funds from stuck, force-closed, or corrupted channels.
Circular Rebalance
A Lightning Network liquidity management technique where node operators send payments to themselves through external routes to shift channel balances.
Commodity-Linked Synthetics
Digital assets that track the price of physical commodities like gold, silver, or oil through derivative mechanisms rather than direct physical backing.
E-Money Tokens (EMTs)
A type of stablecoin under MiCA regulation that is pegged to a single fiat currency and backed by reserves, functioning as a digital representation of electronic money.
Eltoo
A proposed Lightning Network channel update mechanism using SIGHASH_ANYPREVOUT that simplifies state management by allowing any later state to replace any earlier state.
Ephemeral Dust
Temporary dust outputs in Lightning commitment transactions that allow channels to use their full balance without reserving funds for on-chain fees.
Hodl Invoice
A Lightning invoice where the receiver can delay settlement, enabling escrow-like functionality and conditional payments on the Lightning Network.
HTLC (Hash Time-Locked Contract)
A conditional payment mechanism using hash locks and time locks for trustless atomic transactions across payment channels.
Hybrid Collateral Ratio
A stablecoin design mechanism that dynamically adjusts the mix of asset-backed collateral and algorithmic stabilization to maintain price peg.
Liquidation Cascade
A chain reaction of forced collateral liquidations triggered when market crashes push multiple DeFi vaults below their minimum collateralization thresholds simultaneously.
Loop In/Out
Submarine swap mechanisms for moving funds between on-chain Bitcoin and Lightning Network without custody, enabling non-custodial liquidity management.
Onion Routing
A layered encryption technique where each routing node can only decrypt its own instructions, preserving sender and receiver privacy.
Oracle Manipulation
An attack vector where malicious actors distort price feeds used by smart contracts, often to trigger unjust liquidations or exploit arbitrage in collateralized protocols.
Precision Decay
Cumulative rounding errors in fixed-point arithmetic during multi-hop swaps that can be exploited to drain liquidity pools; a vulnerability class flagged in numerous DeFi security audits.
Probing
A technique used to discover Lightning Network channel balances and network topology by sending fake payments that reveal routing information.
PTLC (Point Time-Locked Contract)
An improved conditional payment mechanism using Schnorr signatures and adaptor signatures instead of hash locks.
Revocation Key
A cryptographic key derived during Lightning Network channel updates that allows a counterparty to claim all channel funds if an old, revoked commitment transaction is broadcast.
Route Hints
Routing information embedded in Lightning invoices that enable payments to nodes with private or unannounced channels.
Shor's Algorithm Vulnerability
A quantum computing threat to elliptic curve cryptography (ECC) that could theoretically break the digital signatures securing Bitcoin and stablecoin transactions.
Specified Stablecoins
A regulatory classification in Hong Kong for fiat-referenced stablecoins with official currency ties, subject to mandatory licensing requirements.