Channel Factories
Layer 2● Common
A construction enabling multiple Lightning channels to share a single on-chain UTXO. Participants in the factory can open, close, and rebalance channels between each other without on-chain transactions, improving capital efficiency.
Technical Notes
Multiparty (n-of-n) funding transaction. Internal allocation transactions create/modify channels. On-chain footprint: 1 UTXO for n users with m channels. Coordination complexity limits practical size. Benefits significantly from Eltoo.
Metadata
Visibility: Public
Created:1/3/2026by System