Cellframe conditional transactions: How it works

Today, we’re going to talk about one of the unique mechanisms of our platform — conditional transactions. They facilitate interactions between service customers and providers while ensuring that the outcome is recorded on the blockchain. As the name suggests, these transactions include predefined conditions that must be met before funds can be transferred to the other party. In blockchain terms, the output of such a transaction can only be utilized when a specific condition is fulfilled.

Conditional transactions can be either standalone interactions between a customer and a provider or form a chain of multiple such transactions. The structure varies depending on the type of service being provided.

How a chain of conditional transactions works:

● The customer creates the first (initial) conditional transaction before selecting a provider. This transaction locks the funds and defines the conditions for exchanging them for services.

● The provider who is ready to fulfill the conditions then creates the second conditional transaction. This transaction allows the provider to receive either a portion or the full amount of the locked funds once the conditions are met.

If the previously locked funds are not fully used, the customer can either reuse them to pay the same provider or choose another one. Depending on the transaction type, any remaining locked funds can also be returned to the customer’s wallet.

Within the Cellframe ecosystem, conditional transactions replace smart contracts while offering a simpler and faster alternative that fully automates the payment process.

Examples of conditional transaction use cases:

● Limit orders on Cellframe DEX

● Delegation of rights to launch a masternode

● Validator keys for block signing

● Service payments

For more technical details, check out the article on conditional transactions in the Cellframe Wiki!