Hashed Timelock Contract

A Hashed Timelock Contract is a type of smart contract that uses cryptographic hash functions and time constraints to facilitate trustless exchanges. It ensures that a participant only receives an asset if they provide the correct secret key within a specific timeframe.

If the secret is not provided before the time expires, the assets are returned to the original owner. This mechanism is the basis for atomic swaps, allowing users to trade assets across different chains without needing a third-party intermediary.

It provides a high level of security by removing counterparty risk through the use of immutable code.