Oddbean new post about login | logout Don't you run into the same onboarding UTXO creation issue to fund the statechain? Or do the "leaves" split off chain custody of the same UTXOs? I think I gotta read this whole thing to try to understand it.
Yes I think all layers will run into that bottleneck of pegging into another network until some sort of covenant comes along on the base layer. Like LN its all about the density of transactions and how long you remain in the ecosystem without touching the chain again
According to the documentation, you are able to onboard a UTXO and then split it into leaves offchain, i.e. on the statechain (if that’s what you’re thinking about).
Yes! That's what I was trying to understand. Cool to see this stuff starting to get more widely implemented.