Native Eltoo
Lightning Network
Native consensus-level implementation redefining off-chain payment channels with zero-proof validation and simplified state management. No penalties. No watchtowers. Just pure protocol elegance.
What is Native Eltoo?
Native Eltoo is a revolutionary state update protocol implemented at the consensus level that eliminates the fundamental problems of traditional Lightning Network implementations.
| Metric | Traditional Lightning Network | Native Eltoo |
|---|---|---|
| Complexity | High (penalties, old state risk) | Low (last state wins) |
| Offline Safety | Requires monitoring | Weak dependency on monitoring |
| Watchtowers | Mandatory | Optional |
| Versatility | Mainly payments | Payments + contract states |
How Native Eltoo Works
Native Eltoo channels are first-class transaction types validated at consensus level, operating through three simple transactions and an on-chain registry that serves as the authoritative source of truth.
FUND
Create a payment channel and establish initial state.
UPDATE
Update channel state by incrementing state number and updating balances.
SETTLE
Close channel and distribute final balances to participants.
Channel Lifecycle
Native Registry Evolution
Cross-Block State Management
Native Eltoo's on-chain registry maintains authoritative channel state across multiple blocks. UPDATEs are native transaction types confirmed at consensus level, and SETTLE transactions validate against the registry - even if the anchor was established blocks earlier.
last_state_number[X] = 5 // Block N
last_state_number[X] = 12 // Block N+5 (overwrite)
if CSV passed and ref_state==12 -> SETTLE โ
Key Point: Settlement references state from 5 blocks ago - this is VALID. The anchor can span multiple blocks.
Native Eltoo vs Lightning Network
Native Eltoo fundamentally reimagines payment channels through consensus-level implementation, eliminating penalties and simplifying state management.
Native Safe Overwriting, No Penalties
Unlike Lightning Network's justice system that risks total fund loss if you go offline, Native Eltoo uses consensus-enforced safe state overwriting. Offline periods are completely safe - no punishment mechanisms.
Dramatically Simplified Complexity
Native implementation replaces 10+ fields (revocation keys, delays, hashlocks, multiple scripts) with just state_number + PTLC balances. Core logic is <500 lines vs thousands in LN specs.
Native Multi-Asset Support
Direct RGB asset support with native balance commitments. HTLCs bloat for each asset in Lightning; Native Eltoo handles tokens, stablecoins, and NFTs naturally at consensus level.
Optional Watchtowers
Watchtowers are mandatory for Lightning Network safety. With Native Eltoo's consensus-level registry, they're optional - use them for audits via channel_id queries, not safety.
High Offline Tolerance
Lightning Network: hours max offline without risk. Native Eltoo: days or weeks via timelocks. No fear of penalty transactions while you're away.
Native Consensus-Level Security
Script-based validation (LN) vs native consensus-level enforcement (Native Eltoo). Prevents malleability attacks, ensures strict monotonic state progression at protocol level.
Development Roadmap
Native Eltoo Testnet
Native Eltoo currently deployed on Tondi testnet with full consensus-level integration. All 109 tests passing. Complete SDK and WASM bindings available for developers.
Security Audits
Comprehensive third-party security audits of consensus rules, STPC mempool strategy, and cryptographic implementations.
Mainnet Launch
Production deployment on Tondi mainnet after successful audit completion and extensive testnet validation.
Ready to Explore Native Eltoo?
Read the complete technical specification and native implementation architecture documentation.