Timelock/Locktime

What Is a Timelock/Locktime?

A timelock, also known as a locktime, is a feature of certain types of transactions that allows them to be executed only after a predetermined amount of time has passed. This type of transaction can be used in various scenarios such as preventing double-spending or ensuring funds are not released until the agreed upon conditions have been met. Timelocks are commonly found in cryptocurrency networks and smart contracts where they provide an additional layer of security for users.

Timelocks work by setting up a specific block height or timestamp at which point the transaction will become valid and executable on the blockchain network. The sender must specify this information when creating the transaction so that it cannot be changed later on. Once set, all nodes within the network will check whether enough time has elapsed before allowing it to proceed with execution. If not, then it remains pending until its designated locktime arrives and is accepted into the blockchain ledger accordingly.

See also  Initial Public Offering (IPO)

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