<ul data-eligibleForWebStory="true"><li>Statechains are a second layer protocol based on the eltoo proposal, with variations like Mercury and Mercury Layer implemented in recent years.</li><li>Statechains enable off-chain ownership transfer of entire UTXOs between users with the help of a coordinating server.</li><li>The original Statechain design involves pre-signed transactions and a coordinator ensuring trustless fund transfers.</li><li>Mercury and Mercury Layer versions of Statechains offer functionality without requiring a softfork, using multiparty-computation protocols.</li><li>Statechains show potential synergy with other Layer 2 solutions like Lightning Channels and vUTXO in an Ark batch.</li><li>While not entirely trustless, Statechains minimize trust and facilitate efficient UTXO transfers off-chain.</li><li>The implementations by CommerceBlock have faced challenges in real-world adoption, possibly due to trust model concerns or limited awareness.</li><li>Despite challenges, the availability of open-source software ensures Statechains' presence for potential future use.</li></ul>

Bitcoin Layer 2: Statechains

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