What are Payment Channels?
Payment Channels are a mechanism where two or more parties can directly and trustlessly exchange and update a transaction.
The mechanism includes methods for establishing, or opening, a payment channel, updating the channel, and finalizing, or closing, the payment channel. The mechanism also covers the possibility of any of the parties becoming unresponsive, usually by enabling the recovery of funds after a fixed time.
Payment channels support extremely rapid transaction updates with only the final closing transaction being confirmed in the blockchain.
Payment channels can be useful for streaming data, operating a sequence of events or operating with a live dataset in applications such as gaming and more.
Source:wiki.bitcoinsv.io...
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