This article presents a sample payment channel that uses BitVMX to support efficient revocations. It can be easily extended to function as a state channel and support Hash-Time Locked Contracts (HTLCs) for lightning-like routing. However, we aim to keep it simple so that it serves as a clear example of BitVMX’s capabilities and how it can be integrated as a subcomponent of other Bitcoin protocols. In this example, BitVMX is used to handle state revocations and enable efficient watchtowers that store only O(1) data per payment channel.

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