📄️ Mercury Layer Protocol
Preliminaries
📄️ Atomic transfer
The purpose of the atomic transfer protocol is to enable two (or more) coin transfers to be completed in a way that they all complete or none of them do. This effectively means that the transfer-receiver function and key update is only completed if both receivers have the correct information to proceed. Once each receiver has verified that the transfer message they have received is valid, then the other parties can be allowed to complete transfer-receiver.
📄️ Lightning Latch
A latch transfer enables a statecoin to be transferred only on condition of the sucessful payment of a Lightning network invoice. This is a protocol that enforces atomicity of a statecoin transfer and lightning payment - it can be used for the sale of a statecoin UTXO for an arbtrary amount of bitcoin in a private and non-custodial way without counterparty risk.