simpleltoo

Inspiration

The need for simpler, more elegant Layer 2 solutions on Bitcoin. Eltoo's symmetric state updates eliminate the complexity and "toxic information" problem in current payment channels like Lightning.

What it does

Simpleltoo implements the eltoo protocol using Simplicity script language, enabling flexible off-chain payment channels where any old state can be replaced by a newer one without punishment mechanisms.

How we built it

Built using Simplicity scripting on Bitcoin, implementing floating transactions with state numbers that allow update transactions to bind to any previous state, creating symmetric payment channels.

Challenges we ran into

Implementing SIGHASH_ANYPREVOUT-like behavior in Simplicity, managing state number enforcement on-chain, and ensuring secure binding of settlement transactions to their corresponding update transactions.

Accomplishments that we're proud of

Successfully translating eltoo's elegant state replacement mechanism into Simplicity.

What we learned

Simplicity's expressiveness makes complex Bitcoin protocols more accessible. Symmetric state management is fundamentally simpler than asymmetric punishment systems.