Statechains

"Trustodial" systems like statechains introduce a dilemma in terms of what constitutes self custodial.

The second article in the Bitcoin Layer 2 series. This article covers Statechains, originally designed by Ruben Somsen, and implemented by CommerceBlock.

CommerceBlock has taken their initial Mercury statechain implementation, a second layer akin to Lightning, and massively improved the privacy for users. The operator now is incapable of learning anything about users on-chain activity.

A Commerceblock BLIP facilitates Lightning channels built on Bitcoin statechains, improving flexibility for the Layer 2 protocol.