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Sequence diagram of payment channel. In case of a dispute, digitally signed transactions recorded off-chain could be presented by one of the parties to the than the monetary value within.
Summary A two-way pathway aka.
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The Most Misunderstood Concept in Ethereum - Ethereum transactions explainedA payment channel is best described as a "two-way ledger" collectively maintained by two users. The ledger's initial balance is the sum of deposits locked into. State channels are a scalability technology for ethereum enabling instant & free peer-to-peer ethereum transactions. Orinoco is another payment channel solution built on the Ethereum blockchain. In addition to payment channels, Orinoco also provides a payment hub for payment.
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