## Cryptology ePrint Archive: Report 2019/219

Nitro Protocol

Tom Close

Abstract: State channels are an important technique for scaling blockchains, allowing a fixed set of participants to jointly run an application in order to determine how a set of assets should be distributed between them. In this paper, we present a new protocol for constructing state channel networks, allowing state channels to be opened and closed without on-chain transactions and decreasing the number of deposits that need to be held. The protocol readily extends to $n$-party channels and we include the construction of a 3-party virtual channel.

Category / Keywords: cryptographic protocols /