# Dynamic Channel A traditional Lightning Network channel is a single UTXO, while a Lightning channel in the Satoshi Transcending Protocol is a group of UTXOs. Splicing allows for adding or subtracting UTXOs, adjusting the capacity of a specific UTXO, and even managing a single multi-signature address as an entire Lightning channel at any time. This flexibility is essential for transferring assets from the mainnet to the second-layer network. 1. Multiple UTXOs 2. Arbitrary Addition and Subtraction of UTXOs 3. Arbitrary Adjustment of UTXO Size The Circulation Protocol uses dynamic channel technology to arbitrarily adjust channel capacity, allowing the channel to pass any type of asset at any time. Splicing is an atomic operation. Each splicing action is completed by multiple actions, forming an atomic operation. If one action succeeds, all actions succeed; if one action fails, all actions fail. 1. Splicing-In * Mainnet Locking Transaction: Locks assets into the channel address * Ascending Transaction: Ascends assets from the mainnet to the SatoshiNet, allowing them to circulate on the SatoshiNet * Updates the Lightning channel status, increases channel capacity, credits the transferred assets to the initiator's name, and updates the Commitment Transaction 2. Splicing-Out * SatoshiNet Destruction Transaction: Transfers a portion of the channel's assets to an OP\_RETURN address on SatoshiNet, effectively destroying those assets * Mainnet Unlocking Transaction: Withdraws a portion of the channel's assets to a designated address on the mainnet * Updates the Lightning channel status, deducts the corresponding assets from the initiator's name, reduces channel capacity, and updates the Commitment Transaction --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sat20.org/english/asset-circulation-protocol-stp/dynamicchannel.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.