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Hashed Time Lock Contract, hash time lock contract. This is similar to a time-limited transfer. Through a smart contract, both parties agree that the transferor will first freeze a sum of money (send bitcoin to a multi-signature address), and the hash value H(R) of a password R generated by the ultimate recipient will be locked. If the recipient knows the password R within a certain period of time, so that its hash value H(R) matches the known value (actually means that the transferor authorizes the recipient to withdraw), then the money is transferred to the recipient. If the recipient does not know the password R within the agreed time, the transfer party can retrieve the frozen funds. Mainly composed of 2 parts:
Hash value locking ensures that only the password R generated by the final recipient can be unlocked (that is, after the final recipient has received the bitcoin, the intermediate node can unlock the coin. Before the final recipient receives the bitcoin, The intermediate node cannot know the password R).
Time-locking ensures that the transferor cannot take away the bitcoin within a certain period of time (before the final recipient unlocks and takes away the bitcoin), and it can also ensure that the transferor can, if the final recipient does not take away the bitcoin after a certain period of time Get your bitcoins back.