Hashed Time Locked Contract (HTLC)

1 min read

A Time Locked Contract is a Bitcoin transaction which includes a timelock. This Bitcoin transaction is hashed to form a Hashed Time Locked Contract or HTLC, which is used mainly on the Lightning Network to allow Lightning payments to be routed across multiple nodes. Lightning routing allows two parties to trustlessly transact without a direct channel between them, using intermediary channels instead.