Submarine Swaps enable transfers between on-chain addresses and off-chain locations, like the Lightning Network. Just as standard LN transfers chain payments by means of HTLCs that make the final claim on funds conditional on the recipient revealing a secret to all links in the chain, Submarine Swaps use the same logic and procedure to transfer funds across the on-chain/off-chain barrier with minimal trust. They can also be used to enable transfers from another chain, say Litecoin, to an off-chain LN address. Reverse Submarine Swaps allow bitcoin transfers in the opposite direction that is, from an off-chain LN location to an on-chain address.

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