HackMoney 2026 Workshop

Build an App Connected
to the Yellow Network

A hands-on workshop on state channels, instant interactions, and building the future of Web3

📅February 3, 2026
⏱️30 Minutes
👨‍💻Steven Zeiler

What You'll Learn

State Channels 101

Understand what state channels are and why they're essential for modern Web3 applications

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Instant Interactions

How state channels unlock low-latency user interactions across multiple chains

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Code Walkthrough

Step-by-step implementation guide for integrating state channels in your projects

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Use Cases

Brainstorm applications in DeFi, gaming, fintech, AI, and more

Topics Covered

State ChannelsMicropaymentsOn-chain SecurityOff-chain SpeedMulti-chainLow LatencyDeFiGamingFintechAI Integration

Workshop Outline

30-Minute Hands-On Session

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1

Introduction & Context

2-3 min
  • Welcome and overview of Yellow Network
  • The current problem: Why traditional DEXs are slow and expensive
  • Workshop goals and what participants will build
  • Quick poll: Who has experience with Layer 2s? State channels?
2

State Channels Explained

5-7 min
  • What are state channels? Off-chain communication with on-chain settlement
  • How they work: Open channel → Off-chain transactions → Close & settle
  • Key benefits: Instant finality (<1ms), no gas fees per transaction, unlimited throughput
  • Security model: Cryptographic proofs ensure safety without blockchain consensus
  • Comparison: State channels vs Rollups vs Sidechains vs Traditional blockchain
  • Visual diagram: Transaction flow from user to settlement
3

Real-World Applications

5-7 min
  • DeFi: High-frequency trading, micropayment streaming, instant swaps
  • Gaming: Real-time in-game transactions, NFT battles, play-to-earn economies
  • Fintech: Cross-border payments, payroll streaming, subscription services
  • AI & Compute: Pay-per-API-call for AI models, distributed compute credits
  • Social: Tipping, content monetization, peer-to-peer messaging with payments
  • Case study: Yellow Network PerpDEX - 200x faster than competitors
4

Hands-On: Building with State Channels

10-12 min
  • Setup: Required dependencies and development environment
  • Step 1: Initialize a state channel - Opening the channel on-chain
  • Step 2: Sign and exchange state updates - Off-chain message passing
  • Step 3: Handle disputes - Challenge mechanism for security
  • Step 4: Close and settle - Final on-chain settlement
  • Code example: Simple payment channel implementation in TypeScript
  • Live demo: Send a micropayment through a state channel
  • Resources: Yellow Network SDK, documentation, and example repos
5

Brainstorming: Your Use Case

5 min
  • Interactive activity: What could you build with state channels?
  • Prompt questions: What problems in your domain need instant, cheap transactions?
  • Share ideas: Quick discussion of participant ideas
  • Hackathon potential: State channel projects perfect for HackMoney
  • Next steps: Where to go from here - documentation, community, support
6

Q&A & Wrap-Up

3-5 min
  • Open floor for questions
  • Common FAQs: Scalability limits, security trade-offs, multi-party channels
  • Links to resources: Yellow Network docs, Discord community, GitHub repos
  • Call to action: Build a project, join Yellow Network, win HackMoney!

Ready to Build the Future?

Join us at HackMoney and create the next generation of Web3 applications