In “mastering bitcoin” book chapter 14 there is a section about Asymmetric Revocable Commitments that mention the need of refund transaction.
I don’t understand how this refund transaction constructed:
- Does the refund transaction has a timelock?
- It states “the first set of commitments (called the refund) that assigns the initial balance of 5 bitcoin for Hitesh and 5 bitcoin for Irene” does it mean that the two first examples of transaction in this section are the refund transaction?
Output 0 <5 bitcoins>:
CHECKSIG
Output 1 <5 bitcoins>:
<1000 blocks>
CHECKSEQUENCEVERIFY
DROP
CHECKSIG
and
Input: 2-of-2 funding output, signed by Hitesh
Output 0 <5 bitcoins>:
CHECKSIG
Output 1 <5 bitcoins>:
<1000 blocks>
CHECKSEQUENCEVERIFY
DROP
CHECKSIG
- What is the role of the third example:
CHECKSIG
Output 1 <5 bitcoins>:
IF
# Revocation penalty output
ELSE
<1000 blocks>
CHECKSEQUENCEVERIFY
DROP
ENDIF
CHECKSIG
