I got curious about this after checking out a thread on Twitter.
Even though it's about Ethereum, it got me thinking while looking into HTLCs and side channels like lightning networks and all that.
Time plays a huge role here. So, what happens if there's a court order and Bob needs to access his coins before Alice gets to keep them?
Are there any rules that cover situations like this?
By the way, if this should be in a different section, go ahead and move it. But I think this topic, even though it involves law, is pretty relevant and makes sense for devs and people in Computer Science/Engineering.
When it comes to those various TX versions in a side chain, where only one gets sent to the Bitcoin Blockchain, it makes me wonder what happens if something goes wrong during that process.
I remember a lecture discussing how a software startup faced issues after a failure, where backups ended up broadcasting older versions, and people lost their money. Imagine how much worse it could get if they don’t realize how important it is to log in and take certain actions.
How do court orders handle timed transactions?
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rocket2020Member
Posts: 24 · Reputation: 124
#2Dec 23, 2018, 03:06 PM
If you need to access coin before a nTimeLock has expired, you will be unable to access said coin without the corporation of the other party (specifically regarding a closing LN transaction).
If a court has jurisdiction over the other party, the court may (attempt to) compel the other party to corporate in closing a LN channel. Without access to the subject private keys, there is no guarantee this will actually happen. In other words, the court can threaten the other party with arrest, or other sanctions if the other party does not corporate, and can direct law enforcement to attempt to gain access to private keys by force, but a court order alone will not allow coin to be spent.
The twitter thread you are referring to appears to be in regards to coin held in a coinbase account. This is similar to someone trying to access money in their bank account.
I mean in a situation like this
(from lec15, MIT 4/2018)
Now the court has frobiden Alice from using her account,
If she doesn't, Bob will take the 8 coins
.
In this situation as an example, or in any other situation where HTLC is used and the possession of coins depends on time
.
Do courts understand that and facilitate say Alice taking what is hers (spend it in Bitcoin sense, even if she can't really spend it in money sense)?
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