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HTLC (Hash Time-Locked Contract) is the backbone of conditional payments in Lightning. PTLC (Point Time-Locked Contract) is its next-gen upgrade โ€” offering more privacy, flexibility, and better composability. Learn how they differ and why PTLC matters.

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Transcript
00:00In Bitcoin and Lightning, you might hear acronyms like HGLC and PTLC.
00:04Let's break them down simply.
00:06First, HGLC stands for Hash Time Locked Contract.
00:09It's a smart contract mechanism used in Lightning and cross-chain transactions.
00:12Funds are locked until the receiver reveals a hash preimage before a timeout.
00:16If the receiver fails, the sender can reclaim.
00:19Now, PTLC stands for Point Time Locked Contract or Public Key Time Locked Contract.
00:23It's an evolution beyond HGLC.
00:26Instead of using a hash in preimage, PTLC uses an elliptic curvepoint.
00:29This improves privacy or contracts look-alike, flexibility can support adapter signatures,
00:34scalabilities and composability with advanced constructions.
00:37In short, HGLC is the older way Bitcoin and Lightning enforce conditional payments.
00:41PTLC is the newer method, enabling more privacy and advanced features
00:45and is likely to be the future of conditional payments and Bitcoin scaling layers.
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