Richorich - Bitcoin

Bitcoin, the leading cryptocurrency with a top-notch marketplace value uses the cutting-edge technology of Blockchain in its transactions. Even though the blockchain technology is new and safe while doing any cryptocurrency exchange with the decentralized network, the developers have been looking forward to reconstructing the technology.

This idea of making a change in revolutionary technology was because the network needs users to store a considerable amount of data. This needs it to increase the bitcoin’s capacity but makes it hard to download and run.

Lightning Labs co-founder ‘Laolu’ Osuntokun and Blockstream’s Christian Decker and Rusty Russell have proposed a different substitute to make off-chain transactions better and simplified. This has been termed as Eltoo.

Eltoo is one of the core innovations which works to store only off-chain transaction data. It is a drop-in replacement for original update mechanism which maintains backward compatibility. This can not only solve the problem of boosting the storage capacity for data users but keep the cryptocurrencies safe too. It solves the problem of “information asymmetry” i.e. it saves the history of data and toxic information. As Decker stated, “With eltoo, we reduce the risk of funds being swept away. We remove this toxic information.”

Decker personally faced the problem, that is why he wanted changes to the network to make the technology more reliable and safe. He made a statement which clears this thing pretty well,

“I had an old lightning node on my laptop. I restored it. I didn’t know I didn’t have the newest state. The guy closed the connection because they knew it was an old state! Because he could steal it. Which he did, by the way.”


Retraction of blockchain or one can say the implementation of the changes into blockchain became the need to stop the intumescence of it because of the unnecessary data. There is a diminution of transactions using bitcoin so developers from a long time were trying to solve this deficit for users.

There were a lot of attempts made to keep track of transactions, mainly off chain transactions. Now, the most known solution to the faced problem is the “L2 penalty” model. This helps in a way that when anyone tries to broadcast earlier transaction data, that is detected and penalised by losing the money.


Eltoo is just a phonetic spelling of L2 which stands for Layer-two, as jested by Decker. There will be the relatable advantage of L2 which may increase the lightning scalability.


The minor architectural change includes the introduction of the “SIGHASH_NOINPUT” flag for the signatures. This code needs to be added to bitcoin codebase for the support of eltoo. It offers users to choose from various alternative options which, in turn, helps to change the input data at the time when the transaction was created and at the time when it was written in the blockchain.

Decker also said that SegWit(Segregated Witness) was having a huge support of active developers from bitcoin, but the code change was added 2 years after its proposal. In addition to that, the sighash_noinput function is much easier to be merged to bitcoin’s codebase.

This could be the new twist coming to bitcoin lightning tech.