Introduction
With the development of Bitcoin in 2009 by the software developer Satoshi Nakamoto, there have been tremendous changes in the traditional banking system and has increased the possibility of advancement shortly. After Bitcoin ethereum was developed and many other cryptocurrencies came into existence.
All these cryptocurrencies including Bitcoin work on the set of instructions that are already filled in the script which is known as the Bitcoin script. Bitcoin script is a kind of programming language for Bitcoin which helps in the transaction purposes and more importantly in the cryptographic operations which are very important for the mining purpose of Bitcoin. Bitcoin script is a universal set that contains other subsets like opcodes. Opcodes are generally known as operational codes. Check out what are the best exchange platforms to choose.
Various other functions can be operated with the help of opcodes and one of the most famous functions checks lock time verification which is abbreviated as CLTV. As we have already discussed in the article dealing with the OP quotes that it helps in the transaction and with the help of CLTV the user can decide the time at which the bitcoin can be transacted or spent. This is like a fixed deposit in the traditional banking system in which you can use your money only when the fixed period is completed. Similarly, CLTV blocks the bitcoins and does not allow the user to spend those until the fixed time is reached.
How does CLTV work?
The operation of cltv was added into the opcodes by the developer named Peter Todd. He also named these operation codes for cltv OP_CHECKLOCKTIMEVERIFY. This function is very useful because it can help the user to spend the Bitcoin or other crypto assets with proper planning for example if you want to spend the lock-ins as your graduation after the completion of your graduation then you can fix the time and when the period is mature you can transact the Bitcoin or other crypto assets.
Even if the user tried to transact bitcoins or other cryptocurrencies which have the code OP_ CHECKLOCKTIMEVERIFY The conditions will be checked and then the output will say that that transaction can be completed on that particular date which is fixed in the CLTV. The CLTV-protected Crypto assets come to blockchain only when the fixed time height and other conditions are completed. The other type of function which provides a similar function to CLTV is known as NLockTime. The clock time also enables Bitcoin to perform actions based on the time or height of the block used in the blockchain. Now the question arises of how these two functions or operation codes are different from each other.
Operations of CLTV
In clock time the bitcoins are blocked until the fixed time or block height in the blockchain is reached and after reaching the said factors the user can transact bitcoins but on the other hand, In CLTV the transaction can not be done or performed until all the conditions related to those bitcoins is reached and completed and it also provides the opportunity to user to amend the conditions if the previously set conditions are met.
Another advantage of the CLTV operation is that it enables the user to create a payment channel in which microtransactions can be performed outside the blockchain and there is no need to pay extra commission fees for the transactions and this can be done without collapsing the existing blockchain.
Thus we can say that it is very useful code in bitcoin script which substitutes the traditional fixed deposit system for digital or programmable money.
Thus, CLTV forms an important part of the chain of bitcoin.