Teechain on Bitcoin

Domain: Finance

Problem identification: 

To make the Bitcoin network more throughput-scalable. 

Why Blockchain: 

To avoid the necessity of trusting a centralized banking system.

Functional Description

Teechain introduces micro-payment channels between two nodes via untrusted intermediary relays that do not modify the underlying consensus protocols. Value transfers are kept “off-chain” as local sequences of mutually-agreed balance-state updates, not confirmed as normal transactions. They cannot be spent until the “closure” of the channel, when only the most recent commitment transactions are broadcast to be mined by the blockchain network. 

Consensus mechanism used

  • Side-chain network

Current status

  • Proof-of-concept.

Focus point commentary indicating the value of the case study in relation with learning modules

Learning Modules Focus Points

Consensus Presents a use case of a side-chain network


  • The need to provide a proof of events occurring on the side-chain.

Alternative Approaches:

  • Lightning Network.


  1. J. Lind, I. Eyal, F. Kelbert, O. Naor, P. Pietzuch, and E. G. Sirer, “Teechain: Scalable blockchain payments using trusted execution environments,” arXiv:1707.05454, 2017.
  2. Website: https://www.teechain.network/.