Setup Protocol

NOTE: All of the protocols below specify a 2-party interaction but can be generalized to the multi-party case in the future.

Messages

After authentication and initializing a connection, channel establishment may begin. All state channels must run the Setup Protocol before any other protocol. As the name suggests, its purpose is to setup the counterfactual state such that later protocols can be executed correctly.

Specifically, the Setup Protocol exchanges a commitment allowing a particular off-chain application to withdraw funds from the multisignature wallet. We call this application instance the Free Balance application, representating the available funds for any new application to be installed into the state channel. The app definition is called ETHBucket.

Unlike other protocols, there is no extra message data for the Setup Protocol because the commitment digests are fully determined by the addresses of the participants.

The SetRootNonce Message

The SetRootNonceAck Message

The Setup Message

The SetupAck Message

Commitments

Commitment for SetRootNonce and SetRootNonceAck:

The commitments that these two messages rely on have the following parameters:

The commitment can be visually represented like:

Commitment for Setup and SetupAck:

The commitments that these two messages rely on have the following explicit parameters:

Additionally, the following parameters are implicitly computed:

The commitment can be visually represented like:

NOTE: The usage of MultiSend in this commitment is unnecessary and should be removed.