In Ark there’s a course of referred to as lifting. When a consumer elevate funds they take an onchain utxo (unspent transaction output) and getting an ark vtxo (digital transaction output) in return.
To elucidate lifting it’s essential to know what a vtxo is.
Initially, a vtxo is a selected kind of bitcoin-transaction. We name it digital as a result of the transaction is meant to by no means go on chain.
In Ark, a vtxo has a really particular design. The design permits the proprietor to spend the cash within the vtxo-unilaterally. Nevertheless, there may be some sort of an expiry date. After 4 weeks the vtxo expires and the Ark Service Supplier is allowed to seize the funds.
Now we perceive what a vtxo is. Making a lifting protocol is not that onerous. Collectively, the consumer and ASP can create a digital transaction that has a vtxo as an output. In addition they create a lifting transaction that may solely be used to fund the digital transaction.
At this level the transactions are created however aren’t funded but. The consumer has seen the transactions and is aware of that unilateral exit path exist. The consumer can safely signal and broadcast the transaction. The consumer has lifted their funds and has a vtxo that can be utilized.
Nevertheless, it isn’t precisely like a vtxo but. The ASP will solely enable the consumer to spend the vtxo as soon as the on-chain lifting transaction is confirmed. The ASP would not wish to be the sufferer of a double-spend assault.
The double-spend assault can be precisely why the pool transaction should be totally funded by the ASP. If customers would fund the pool transactions straight. An evil consumer might double-spend and stop the pool-transaction from making it on chain.