State Channels Developer Update #0 — Counterfactual and Magmo are joining forces

State Channels
Sep 30, 2019 · 2 min read

Over the last year, Counterfactual and Magmo have worked together to explore different tradeoffs within the state channel design space.

But this meant that development was fragmented. Counterfactual specified and implemented the first version of its generalized state channels protocol. During the same period, Magmo specified and implemented its own generalized state channels protocol, named the Nitro protocol.

Now that Ethereum’s state channels R&D community is uniting around a single specification, Counterfactual and Magmo have decided to join into one project, merging our codebases and building a single implementation for the open-source State Channels project.

What does this mean in practice?

  • Counterfactual (L4 & Prototypal) and Magmo are now together working on a single open-source project: State Channels
  • Counterfactual is being folded into the broader State Channels project, and the Counterfactual brand is being retired.
  • Existing Counterfactual users will have a smooth upgrade path to State Channels as the JSON-RPC API will remain very similar and fundamental concepts remain unchanged
  • The existing Counterfactual node and Magmo wallet projects are being merged into one, taking the best of each, and will be located in the statechannels organization on Github.
  • We will be publishing development updates as State Channels, at
  • These updates, and others, will be shared on twitter at @statechannels
  • We will continue working closely with the larger set of contributors to the State Channels project.

Stay tuned for our first routine development update as a unified project. For those able to attend Devcon in Osaka this year, we will be running a workshop where you can learn more about how to build on State Channels.

If you’re interested in following along, or getting involved, you can follow on GitHub or talk to us on Discord.

State Channels

Open source state channels built on Ethereum.

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