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State channels (Timeout Fraud Problem) #3

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@hswick

The query/response mechanism seems like a good place for the use of state channels. However, the current issue is the data availability problem around the timeout mechanism.

Ex: Using a state channel verifier makes a query, solver sends a response. Verifier claims solver never sent a response within the time frame (5 blocks). Solver has chance to prove they are indeed still playing. This fraud proof mechanism happens on-chain. Incentives dictate verifier pulls this trick every single query/response round because they want to see the solver lose. Then each round ends up being on-chain anyways.

Summary - In order to use state channels for query/response need to solve timeout fraud problem.

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