xLumi provides a second layer solution to the blockchain scalability issue, which enables efficient micropayments between parties at a very low cost.
Instead of implementing punishment channels, xLumi ensures the correct state of the payment channel by using smart contracts and a set of mathematical rules. This helps reduce the complexity of payment channels, as well as the number of interactions and storage of keys required in each transaction.
xLumi doesn't require users store a new secret for every off-chain transaction made and reduces number of protocols that can go wrong.
As the transactions could occur offline, repeated payments can be done without transactions fees.
Recipients of funds from an xLumi channel can settle transactions to the chain before the channel closes.