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08_1_Sending_a_Transaction_with_a_Locktime.md
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> :information_source: **NOTE:** This is a draft in progress, so that I can get some feedback from early reviewers. It is not yet ready for learning.
The second way to vary how you send a basic transaction is to choose a locktime. This gives you the ability to send raw transactions at some time in the future.
The previous chapters showed two different ways to send funds from multiple machines and to multiple recipients. But there are two other ways to fundamentally change basic transactions. The first of these is to vary time by choosing a locktime. This gives you the ability to send raw transactions at some time in the future.
## Understand How Locktime Works
@ -16,7 +16,7 @@ When a locktime transaction is waiting to go into a block, it can be cancelled.
> :book: _What is Timelock?_ Locktime is just one way to lock Bitcoin transactions until some point in the future; collectively these methods are called timelocks. Locktime is the most basic timelock method. It locks an entire transaction with an absolute time, and it's available through `bitcoin-cli` (which is why it's the only timelock covered in this section). A parallel method, which locks a transaction with a relative time, is defined in [BIP 68](https://github.com/bitcoin/bips/blob/master/bip-0068.mediawiki) and covered in [§9.3: Using CSV in Scripts](09_3_Using_CSV_in_Scripts.md).
> Bitcoin Script further empowers both sorts of timelocks, allowing for the locking of individual outputs instead of entire transactions. Absolute timelocks (such as Locktime) are linked to the Script opcode OP_CHECKLOCKTIMEVERIFY, which is defined in [BIP 65](https://github.com/bitcoin/bips/blob/master/bip-0065.mediawiki) and covered in [§9.2: Using CLTV in Scripts](09_2_Using_CLTV_in_Scripts.md), while relative timelocks (such as Timelock) are linked to the Script opcode OP_CHECKSEQUENCEVERIFY, which is defined in [BIP 112](https://github.com/bitcoin/bips/blob/master/bip-0112.mediawiki) and also covered in [§9.3](09_3_Using_CSV_in_Scripts.md).
> Bitcoin Script further empowers both sorts of timelocks, allowing for the locking of individual outputs instead of entire transactions. Absolute timelocks (such as Locktime) are linked to the Script opcode OP_CHECKLOCKTIMEVERIFY, which is defined in [BIP 65](https://github.com/bitcoin/bips/blob/master/bip-0065.mediawiki) and covered in [§9.2: Using CLTV in Scripts](09_2_Using_CLTV_in_Scripts.md), while relative timelocks (such as Timelock) are linked to the Script opcode OP_CHECKSEQUENCEVERIFY, which is defined in [BIP 112](https://github.com/bitcoin/bips/blob/master/bip-0112.mediawiki) and also covered in [§11.3](11_3_Using_CSV_in_Scripts.md).
## Create a Locktime Transaction
@ -130,7 +130,7 @@ Cancelling a locktime transaction is _very_ simple: you send a new transactions
Locktime offers a way to create a transaction that _should_ not be relayable to the network and that _will_ not be accepted into a block until the appropriate time has arrived. In the meantime, it can be cancelled simply by reusing a UTXO.
> :fire: _What is the Power of Locktime?_ The power of locktime may not be immediately obvious because of the ability to cancel it so easily. However, it's another of the bases of Smart Contracts: it has a lot of utility in a variety of custodial or contractual applications. For example, consider a situation where a third party is holding your bitcoins. In order to guarantee the return of your bitcoins if the custodian ever disappeared, they could produce a timelock transition to return the coins to you, then update that every once in a while with a new one, further in the future. If they ever failed to update, then the coins would return to you when the current timelock expired. Locktime could similarly be applied to a payment network, where the network holds coins while they're being exchanged by network participants. Finally, a will offers an example of a more complex contract, where payments are sent out to a number of people. These payments would be build on locktime transactions, and would be continually updated as long as the owner continues to show signs of life. (The unifying factor of all of these applications is, of course, _trust_. Simple locktime transactions only work if the holder of the coins can be trusted to send them out under the appropriate conditions.)
> :fire: _What is the Power of Locktime?_ The power of locktime may not be immediately obvious because of the ability to cancel it so easily. However, it's another of the bases of Smart Contracts: it has a lot of utility in a variety of custodial or contractual applications. For example, consider a situation where a third party is holding your bitcoins. In order to guarantee the return of your bitcoins if the custodian ever disappeared, they could produce a timelock transition to return the coins to you, then update that every once in a while with a new one, further in the future. If they ever failed to update, then the coins would return to you when the current timelock expired. Locktime could similarly be applied to a payment network, where the network holds coins while they're being exchanged by network participants. Finally, a will offers an example of a more complex contract, where payments are sent out to a number of people. These payments would be built on locktime transactions, and would be continually updated as long as the owner continues to show signs of life. (The unifying factor of all of these applications is, of course, _trust_. Simple locktime transactions only work if the holder of the coins can be trusted to send them out under the appropriate conditions.)
## What's Next?