Statechains
Layer 2● Common
A Layer 2 protocol transferring UTXO ownership off-chain by passing the private key and updating a state entity. The state entity co-signs all transactions but cannot spend unilaterally. Mercury Layer is the primary implementation.
Technical Notes
UTXO locked in 2-of-2: user + statechain entity (SE). Transfer: old owner gives key to new owner, SE updates co-signing obligation via decrementing timelocks. SE sees transfers but cannot link to identities. Trust in SE for availability.
Metadata
Visibility: Public
Created:1/3/2026by System