# John Law - Scaling Lightning With Simple Covenants (Highlights)

## Highlights
- The simplest way to have a single UTXO create channels for a large number of casual users is to put a covenant on the UTXO that forces the creation of a tree of transactions, the leaves of which are the casual users' channels. ([View Highlight](https://read.readwise.io/read/01hfr0a5b8bcyj4ff410fx0kcb)) ^629469205
- Thus, any time before E, casual user A_i can put the Lightning channel (A_i, B) on-chain by putting all of its ancestors in the timeout-tree on-chain. Once (A_i, B) is on-chain, the expiry E has no effect so A_i and B can continue to use the Lightning channel to send and receive payments from and to A_i. ([View Highlight](https://read.readwise.io/read/01hfr68f987jbzady2gmhxz98d)) ^629520697
- On the other hand, sometime shortly before E, casual user A_i can use the Lightning Network to send all of their balance in the channel (A_i, B) to themselves in some other Lightning channel that is the leaf of some other timeout-tree. ([View Highlight](https://read.readwise.io/read/01hfr6fsw593ymzhpe186emypp)) ^629521365