I am searching for more information on the concept of refund transactions. I found that the MRL is working on a paper on the topic (source).
Would this be something that will be used in channel applications? How would this work, would a tx be mined but the output timelocked with our current unlock time and another tx would be create that could back send the output before the unlock time?
It sounds like it could be a equivalent to the simple bitcoins timelock tx component.
This isn't particularly helpful, but it's all I can find.
"Refund Transactions
Informal discussions with a Purdue researcher at the IEEE workshop yielded great new information about refund transactions under active research by one of his students. Refund transactions are a necessary component of certain payment channel applications. A scheme was proposed to us that involves modifying the structure of outputs and ring signatures to allow for a sender to include two outputs: one is valid prior to a specified block height, and the other is valid afterward. We are working with the researchers on the details and security of this scheme, which could have great applications to Monero transactions."
Source: https://www.reddit.com/r/Monero/comments/8fzfzx/april_monthly_report_from_sarang_noether/
