Meta Channels

Meta Channels allow for two parties to have a State Channel without opening a State Channel if they pass messages through some intermediary hub.

Figure 2: Meta Channels

A simple example is the case where A wants to pay B $X via State Channels without explicitly opening up a State Channel with B as seen in Figure 2. Since A and C have a State Channel and B and C have a State Channel, A and B can use C as an intermediary to get their payment done. A gives B a password and tells C that if C can get the password from B and then give it to A, A will give C $X plus some service fees. C then tells B that C will give B $X if B will give C the password that A was looking for. Now B gives C the password and receives $X. Then C gives A the password and receives $X plus service fees which ultimately results in A paying B $X.