- Individual VTXOs get organized by the operator into a virtual transaction tree
- The virtual transaction tree is anchored via a batch output in a commitment transaction to Bitcoin
- An onchain confirmed commitment transaction gives all included VTXOs Bitcoin-level finality
How does onchain settlement work?
Explains batching and settlement in Arkade.
Arkade can batch thousands of offchain operations into a single Bitcoin transaction output.
The settlement process is as follows: