HTLCs and Barters; Trader, protect Thyself!


Whether or not we THINK we know someone in business, the right thing to do is ALWAYS protect your interests! A friend will remain a friend if both parties keep business matters separate from matters of the heart. In GOD we trust, but, in business – trust a contract!!

Understanding the Hash Time lock contract.

A Hashed Timelock Contract (HTLC) is a smart contract (used in Cryptocurrency channels) created between two parties to eliminate the apparent risk and vulnerability.

In other words, an HTLC requires that recipients provide proof that they have received payment within an agreed-on time-frame. Otherwise, the deal doesn’t go through. This and other terms can be agreed on pre-transaction phase and will protect both parties of the transaction.

On the Compumatrix DEX, you may create an HTLC between you and a friend, which will protect you both in the transaction!

Scrutinizing an HTLC:

There are two principal elements of an HTLC that characterize HTLC’s from a regular cryptocurrency transaction:

  • #One is a “hash lock.” which is created by the originator of the transaction. This is done by using the “roll the dice button” to scramble the key numbers, giving a unique “hash lock,” which will unlock the original Hash. The originator stores the key and the Hash, which is used in the final transaction.
  • #Two is the “Time lock” and another essential component of protection against loss. Two parties agree on a specified time for funds to be transferred and select that from the initial form. They can also arrange an escrow if they want other trade conditions if they so desire between themselves.


Bartering is probably one of the oldest means of exchange. Goods and services are exchanged without money being involved. It is good to know that this practice is still alive and can be modified to fit today’s business.

In this digital age, bartering practices take on a technical air. Suppose your friend has an asset you wish to own, and you have an asset THEY want to own. There is a way to exchange these between yourselves while protecting both party’s interests.

Instead of using the market, perhaps you and a friend use a Barter transaction like one that’s available on the Compumatrix DEX?

Keep in mind that whichever transaction you and a friend decide is best for you, neither of these will have any effect on the Blockchain values!

Find helpful guides and “How To’s” on creating these and other transactions as a member of the Compumatrix DEX ecosystem.

Our community has evolved and has overcome the many challenges that start-up companies face in the digital cryptocurrency world. Our founding and current members join together to bring the present and future of humanity together with our company motto: Engage, Enrich, and Enhance life.

Join today, and find out how to “grow” your portfolio. Begin to build for your future and the future of your family! Check out other ways and means of conducting your digital cryptocurrency business with us!

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About the author

Born in Illinois and the third oldest child of 10 children. Gail learned many lessons in life that would serve her well in her future. Patience, sharing, compassion, understanding, love, and acceptance were a way of life. Family is significant to Gail as a mother of three herself.
Gail lives by the motto "live and let live," and she takes pride in helping others. Educated, yes, but believes life is the best teacher and learning depends highly on an open mind.


  1. Thank you for this info, Gail ! Our webinars and written instructions are very clear regarding making HTLCs and Barters transactions on DEX but your post seems to add a new layer of clarity. These are two important concepts that need to be grasped and will be of great importance when doing P2P transactions on DEX.

  2. Thank you for the further explanation of the HTLC. With all of the new terms and methods of trading coming forth, it is difficult to keep up with them all. Any in depth explanations are welcome and needed for those of us who are trying to grasp the wonders of the digital age with some success.

    1. Gloria, I agree with you fully .. all the new terms , language , learning for me is more difficulted , I could blame it on my age but I am not going to use that excuse , though I could very easily. LOL .. Oh well it dose take me some time to wrap my head around things .. I will get it after awhile.

  3. How exciting “Hash Time Lock Contacts” are !
    I find a friend or coworker I “Know”(maybe in the Market place of Discord)
    Barter a Trade with them,then we both prepare our
    “HTLC” with the Hash Lock and Time Lock we are protected,and there you have it Automatic Swap
    For Compumatrix the Best part is (Quote) neither of these will have any effect on the Blockchain values!

  4. Thanks again Gail , quite interesting how this will work that will not affect the block chain values… All of this HTLC info is very helpful. The Compumatrix video Henry put out is again very helpful . I am a visual and hands on type person. Yes until I do a HTLC to fully understand how it works . It will take me awhile to wrap my head around it .. no prob though .. I will get it !

  5. Hash lock … Time lock … HTLC … understanding the Hash Time lock contract. and all the other new words not in my vocabulary , new ways of doing things in our crypto currency world .. it is hard for me to wrap my head around knowing and doing all these new ways of this .. Oh I will get it .. May take a bit , But i am willing to learn.

  6. That is an awesome article, Gail! I have just come to understand how HTLC works, and how beneficial it is/will be to our own ecosystem. And now added to that, the Barter system (training coming soon?), which adds another layer of connection with our fellow longer-term members and newbie members. What I think is one of the most beneficial aspects is the fact that all of these transactions are NOT on the order books, and will therefore not affect Blockchain values – genius! 🙂

  7. Thank you Gail for information about HTLCs,It is very clear that transactions can be done between the two parties,which we know each other without any problem through HTLCs in dex account,hash lock can be used for final transaction and time lock saves us from loss.

  8. what a great blog read and with the information given here is so very helpful in understanding the overall biz of keeping You — Yourself covered from loss and deception — and it really is not just on the Crytpo world — but You should Always keep You covered from theft deception in Everything You do — jmho — thanks Gail

  9. A home run Sophye! There is more information here than meets the eye, and trading off for things you want is not a bad thing especially when it does not affect on the Block Chain values. Of course finding a friend, or someone you know who wants to trade may be slow to difficult at first, and take it slow and learn the right way to do the transaction.

  10. Wow…there can’t ever be too many ways to protect our transactions and cryptocurrencies. This seemed like a simple but effective way to keep our business secure. Also good to know that bartering can also be added under this protection. Hash locks and time locks are looking like two key terms to remember. A big plus is that we won’t be able to mess up the block chain values using these tools. Thank you Gail!

  11. I think this would be great for members who aren’t comfortable with trading to be able to trade with their peers and not worry about affecting the blockchain value! This and the Barter option
    I can see many uses for and thank you for showing us this!

  12. Hello all..I am looking forward to being able to use my cell phone to “onboard” new members and to do some trading on our DEX. I love the mobile app and I can see how especially the younger generations who seem to be on their phones 24/7’s will be able to use it a LOT to grow their business.

  13. I read more than I comment which is probably not a good thing for points earning. BUT I have learned a lot and still need to learn a lot more. These type of blogs helps me to understand the many terms and the whys and wherefores of trading. Keep them coming!!

  14. Thanks, Ma’am for posting this blog. I have read the written version of the Webinar which Henry posted and listened to the Webinar and it’s a lot clearer now. I believe both are a vital tool in helping to spread the word about Compumatrix and also helping members to grow and learn.

  15. Great article not just on the factual information which is always good to learn about but the last couple of paragraphs really stand out for me. Keep up the great work and together we will overcome all obstacles.

  16. What a great blog Gail..Lots of great info here to know and understand especially if you dont want to trade or feel uncomfortable with it. This is info I will be referring to often. I like the barter way and good to know that the blockchain is not affected..

  17. Gail, you are a gem! You are like the energizer bunny you keep going, and going, and going. I so appreciate your being this way. We benefit in many ways from your timely blogs and instructions. Our education with Compumatrix is essential, and this blog is another to further us in our knowledge. Thank you.

  18. Thank you Gail for you nicely simplified HTLC concept. Appreciate the time and effort you always put in projects that help all of us the compumatrix members.Bartering will go a long way in helping us to swap assets andHTLC will ensure of equitable transaction.Keep up the good work that you always do and thanks again

  19. This fits right with the discussions around the table in the past week. Bartering is as old as time but some still don’t get that you have to have an equal value transaction that both parties agree to; to be fair. How I wish this had been in place over the past few years since I would have put “neighbors” into an HTLC to force them to uphold their end of the barter. Doing this with friends, neighbors, acquaintances, even friends of friends protects your relationships in the long run and makes for a better transaction overall. I hope everyone really pays attention to this and takes it to heart; not just within our company but for every day barter swaps.

  20. Thank you very much for the increased knowledge base on the HTLC. I’ve become smarter now knowing how to conduct my transactions on the P2P (Peer to Peer) without the fear of being scammed or loosing my assets based on word of mouth, friendship nor IOU’s. HTLC being a contract has really brought confidence in my dealings. “A friend will remain a friend if both parties keep business matters separate from matters of the heart. In GOD we trust, but, in business – trust a contract!!” Beautiful way to open up this blog.

    Thank you Gail.

  21. this is great reading and a 3rd time it actually got past some of the unknowns for me — bartering is as old as time but still takes Fair value or honor ?? and now have much comfort in the HTLC business end — but remember a contract is only as legit as the Trust and Honor of those who are on that contract — so do your due diligence –jmho —

  22. Thank you, Gail and Carmen are right. You are like an energizer bunny. I need a battery. I loved the blog, and we are all going to have a fantastic 2021.

  23. Hi Gail Thanks for another great article and for the further explanation of the HTLC. I feel with all of the new terms and methods of trading coming forth, it is difficult for me to keep up with them all. That is why I’m going to leave that to the experts.

  24. Bartering is big business and one of the oldest business platforms in use. I was administrator for a barter company in the mid 1980’s when computers were in the infancy and most of our bartering was via a “Checkbook” with stamps and a weekly news mailer announcing the goods or service to barter. Each participant had a contract with rules etc. that had to be adhered to for a completed barter transaction. It was clumsy and time consuming, but it worked. Nothing much has changed in the digital age except the speed and security of transactions. Contracts are still the utmost importance and used on the “Blockchain” allowing thousand of transitions across boarders to be legal and fast according to the contract rules. With safely and securely transactions by both parties, eliminating insecurity of fulfillment by either party. The Cheat factor is almost eliminated totally.

  25. Certainly some fascinating information about trading and the HTLC. But also contracts are a wonderful way to go on the blockchain and can give peace of mind and rule out the possibility of cheating. Definately the way to go.

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