Business
WiMi Developed a Payment Channel Rebalancing Model for Layer-2 Blockchain
BEIJING, Aug. 8, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR")
About this update from Wimi Hologram Cloud Inc.
[{"type":"text","content":"BEIJING, Aug. 8, 2024 /PRNewswire/ -- WiMi Hologram Cloud Inc. (NASDAQ: WIMI) (\"WiMi\" or the \"Company\"), a leading global Hologram Augmented Reality (\"AR\") Technology provider, today announced that it developed a layer-2 blockchain payment channel rebalancing model technology. By building an additional protocol layer on top of the main chain, the layer-2 network aims to increase transaction speed and reduce costs without sacrificing the security of the main chain. The payment channel technology, as an implementation of the layer-2 network, allows users to conduct transactions off-chain and interact with the main chain only at the beginning and end of a transaction, effectively reducing the number of on-chain transactions and providing a viable solution for high-frequency transactions.\n\nWiMi believes that the efficient operation of a payment channel requires a mechanism to ensure the liquidity and continuity of transactions between the two parties to the channel, and this is where the rebalancing model comes in. The rebalancing model ensures that the payment channel can operate stably under various transaction scenarios by adjusting the allocation of funds between the two parties on a regular or on-demand basis. In addition, security is always a core consideration in payment system design. When designing a payment channel rebalancing model, advanced encryption technologies and security protocols must be employed to protect against potential security threats such as fraud, theft and cyber-attacks.\nThe secure payment channel rebalancing model for layer-2 blockchain is an innovative solution designed to improve the efficiency and security of transactions. First, the design of the two-layer network allows for a secondary layer to be built on top of the main chain, which is dedicated to processing many payment transactions. In this way, the primary chain avoids congestion caused by excessive transaction volumes, while maintaining its security and decentralized nature. The layer2 of the network manages the establishment, maintenance, and closure of payment channels through smart contracts to enable fast transaction processing. The establishment of a payment channel typically involves two counterparties who create a multi-signature wallet by depositing a certain amount of cryptocurrency on the main chain. This wallet acts as an...