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When transacting on Arkade, VTXOs don’t need to be settled to Bitcoin with every transfer. Instead, they can remain offchain until the latest recipient decides to anchor them to Bitcoin for finality. Such offchain transactions are processed in the virtual mempool and receive preconfirmation status through the Arkade operator cosigning the VTXO transfer.

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Client Workflow: Transacting offchain on Arkade

Users transact offchain on Arkade by submitting a transaction request to the ArkService which then undergoes several steps consisting of verification and signing procedures. The following describes the workflow and the respective functions in detail.
Sequence Diagram Offchain Transaction
Sequence Diagram Offchain Transaction
To spend offchain, the client sends a SubmitTxRequest with a signed Arkade transaction and unsigned checkpoint transactions. The operator verifies them and responds with the fully signed Arkade transaction, its ID, and partially signed checkpoint transactions. The client adds the missing checkpoint signatures and finalizes the process via FinalizeTxRequest, sending the fully signed checkpoint transactions to the ArkService. Once the operator verifies the final signatures, the spend is preconfirmed.