HTLC stands for Hash Time Locked Contracts. It is a smart contract feature that allows transactions to be securely conducted across different blockchain networks.
In HTLCs, the sender locks the funds in a contract which requires the recipient to acknowledge receiving the funds with a cryptographic proof before a certain deadline. If the recipient does not claim the funds, the sender can reclaim them by providing the necessary proof.
This mechanism ensures that the funds are either securely transferred to the recipient or returned to the sender in case of any issues. HTLCs are commonly used in cross-chain atomic swaps and payment channels to facilitate trustless transactions between different parties.
Overall, HTLCs provide a secure and efficient way to conduct transactions across different blockchain networks by leveraging smart contract technology and cryptographic proofs.
