What is Timelock/Locktime?
Timelock or also known as locktime in some contexts is a feature in blockchain transactions that allows delaying transaction execution until a certain time or block height in the future. This functionality adds an extra layer of security and flexibility to transactions, allowing users to set the conditions for when their transactions can be processed.
Timelocks can be very useful in various scenarios, such as in smart contracts where funds are disbursed only after a certain period of time or in dispute resolution cases where the parties agree to wait a predetermined time before completing a transaction.
How Timelock/Locktime Works
Transactions are entered in the Merkle Tree based on block heights approved by miners and they are only approved once this process is complete. Timelocks were originally introduced by Bitcoin creator Satoshi Nakamoto , intended to be a standard feature in all transactions.
The default block time is set at 0x00000000 (0) and the timelock ensures that transactions are not verified until a certain time or block height is reached. This timelock can be categorized as absolute or relative to time. An absolute timelock defines a block relative to a certain time, while a time-relative timelock determines the amount of time that must pass before a transaction can be confirmed.
Time in Bitcoin transactions can be measured in two ways, namely based on the transaction block number or the time stamp. For timelocks based on block numbers, miners receive a specific block number before confirming the transaction, whereas in timelocks based on timestamps, miners must wait until a specified time has passed, measured using Unix time.
Bitcoin uses four methods to determine timelocks, including nSequence, nLocktime, CheckLockTimeVerify, and CheckSequenceVerify. nLockTime and CheckLockTimeVerify apply absolute blocking at the transaction and script level, respectively, while nSequence and CheckSequenceVerify apply timelock relative to the transaction and script level.
Also Read:
What is an All Time High in Cryptocurrencies?
What is Block Size or Block Size on Blockchain
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.