Milestone 1

Consists of two parts

  1. HTLC prototype of payment between two L2s
  2. Transaction design for ad-hoc ledgers

HTLC payment

Example workflow of a payment of some $USDM from Alice to Bob via one intermediary Ida using Hash-Time-Locked Contracts (HTLC).

The topology of the involved L2s is not further specified here, but could be for example two Hydra heads between Alice-Ida and Ida-Bob, or a two-party head beween Alice-Ida and both, Ida and Bob being participants of a Midgard optimistic rollup. Even multi-party heads where multiple intermediaries could share the collateral across multiple HTLC outputs are thinkable, but that would need further investigation how we can guarantee collateralization across multiple outputs.