V Systems, a blockchain cloud and smart contract platform, this week announced the release of xLumi, a new payment channel smart contract for blockchain systems. xLumi provides a second layer solution to the blockchain scalability issue, enabling efficient, low-cost micropayments between parties. It guarantees the security of the payment channel’s funds using a simple set of mathematical rules that can be easily implemented on any blockchain with the necessary infrastructure.
Features of xLumi
- Security Advantages: xLumi ensures the correct state of the payment channel by using smart contracts and a set of mathematical rules. This helps reduce the complexity of payment channels, as well as the number of interactions and storage of keys required in each transaction, and hence, ensure the security of the funds in the payment channel.
- Scalable Transaction Fee Model: As the transactions could occur offline, repeated payments can be done without transaction fees. These payment channels allow users to send small amounts of payments or make high-frequency transactions without transaction fees.
- Easy of Use: The expiration time for the recipient to be allowed to broadcast an update can be agreed upon by both parties before the opening of the payment channel. Recipients of funds from an xLumi channel can settle transactions to the chain before the channel closes.
The V Systems flagship ecosystem project Tachyon Protocol will take the lead to deploy and adopt the xLumi Payment Protocol. Tachyon’s decentralized VPN app has over 2.3M s worldwide. With xLumi, the Tachyon team aims to accelerate the development of Tachyon and integrate the Bandwidth Marketplace into their ecosystem by providing users with a platform to sell their spare bandwidth resources.