Thunderbolt: Fast Asynchronous Off-Chain Bitcoin Transfers

We present Thunderbolt, an off-chain protocol that transfers Bitcoin UTXO ownership with seconds-scale latency, requires no channel graph, no routing, and no liquidity rebalancing, and lets the recipient be offline at the time of transfer. A single UTXO is locked once on-chain under a fixed public key jointly held by the current owner and a threshold committee; ownership then passes through an unbounded sequence of holders; each transfer is a purely off-chain, asynchronous operation whose on-chain cost is zero. The chain sees exactly two transactions regardless of how many transfers occur.

The core invariant is an algebraic cancellation: at each transfer the recipient's fresh secret is added to the holder's share and subtracted from the committee's share, so both shares rotate while the on-chain key stays fixed. To enforce this, the recipient publishes an invoice to a shared append-only ledger (the Thunderbolt Ledger): a public commitment, an encrypted copy for himself, and an encrypted copy for the committee, together with a zero-knowledge proof that all three encode the same fresh secret. The sender fetches the invoice, verifies the proof, homomorphically folds her secret into the recipient's ciphertext to produce a new ownership credential, and publishes the result with a second zero-knowledge proof. Both proofs use a single Sigma-protocol response to force the same witness across elliptic-curve and Paillier verification equations, requiring no trusted setup. The committee operates under a standard $(t,n)$-threshold honest-majority assumption: at most $t{-}1$ of $n$ members may be corrupted. The recipient decrypts at any later time; the committee subtracts the fresh secret from its share. By binding each transfer to a distinct fresh secret and context identifier, multiple UTXOs can be transferred independently in parallel.

On our benchmark machine, a complete off-chain transfer finishes in 1022ms with a combined proof size of 3.8KB. General-purpose SNARK (Succinct Non-interactive Argument of Knowledge) backends are orders of magnitude slower on the same relations: even a reduced-parameter instantiation already exceeds our native proving time by two orders of magnitude, and a faithful realization at the deployed 3072-bit Paillier modulus exceeds the memory budget of consumer hardware.