Hash Time Lock Contract Clause Samples

Hash Time Lock Contract. (HTLC) is a technique of payment in which a depositor can pay a recipient funds by placing them in an escrow state that can be claimed by the recipient only if the latter presents a pre- image of a cryptographic hash function in a transaction. To prevent the funds from being held in escrow for ever, each HTLC has a time limit (a timeout) after which the funds are returned to the depositor. We outline the standard technique of performing a cross chain atomic swap using HTLC in Section 3.1 in the preliminaries.