Hash Time-Locked Contracts are smart contracts utilized to increase the safety of trustless over-the-counter transactions across blockchains. Used on atomic swaps and Bitcoin′s lightning network, HTLCs reduce risk by ensuring that transactions are time-bound. These contracts state that both parties must recognize the stated payment within a specific timeframe for the transaction to be valid. If either party does not verify the payment within the set time, the exchange is canceled. Q: What is a Hash Timelock Contracts (HTLC)? A: is a type of smart contract used in blockchain applications. It reduces counterparty risk by creating a time-based escrow that requires a cryptographic passphrase for unlocking. Knowledge provider：0xeddb693aaba0076ee0de3c822ae56d5c760e89b3 KNOW TO EARN is committed to building the world’s largest blockchain knowledge base and blockchain training academy. Through the interesting form of answering questions, more people can participate in the knowledge learning of the blockchain. You can see this knowledge now because there are a lot of people involved and contributing to the creation of blockchain knowledge. You can also be one of them and share up to 20% in bonuses. You dont need to spend any money, just use part of your spare time to participate in the creation of knowledge. Join our Telegram group to learn more. link: https://t.me/knowtoearn The content of Know to earn knowledge base is provided by users. If there is any infringement, please contact us to delete it as soon as possible. Original link：https://www.investopedia.com/terms/h/hashed-timelock-contract.asp#:~:text=A%20hashed%20timelock%20contract%20(HTLC)%20reduces%20counterparty%20risk%20in%20decentralized,of%20time%20or%20forfeit%20it.