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Questions tagged [lightning-network]

Proposed payment system leveraging payment channels which allow re-negotiation of balances that finally get executed on the Bitcoin blockchain.

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3answers
17k views

How does the Lightning network work in simple terms?

Could you please describe how the Lightning network is supposed to work? How does it scale better than pure blockchain transactions? What are the advantages and disadvantages of Lightning Network ...
9
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1answer
1k views

How is a node in the middle prohibited from keeping the money in a routed Payment in Lightning network?

It is my understanding that Lightning is to scale with users having only few payment channels by leveraging the six degrees of separation theory to facilitate payment routing. I understand how onion ...
7
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3answers
3k views

How are fees determined in the Lightning Network?

How are fees determined in the Lightning Network? For transactions that occur on chain, fees are determined by the availability or demand for space in node's mempools. How are they determined in the ...
28
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3answers
5k views

How are paths found in Lightning Network?

I understand now how multihop payments can work in LN, but how do we discover payment paths in Lightning Network in the first place? Obviously you'd need to take into account the available capacity ...
14
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2answers
1k views

What are the trade-offs between transacting on Lightning Network and Bitcoin mainchain?

Lightning network's first prototype code is online, so it's about time we learn more about what it is. (At least I wish some people would…) What are the expected trade-offs of Lightning Network to ...
7
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1answer
2k views

Do parties in a Lightning Network channel need to be online?

I'm thinking of a scenario where users on mobile devices using a LN client will rarely be online. Let's say Alice opens a channel with Bob and they make 10 LN transactions. After Alice has received ...
6
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2answers
2k views

Is it possible to add funds to an already-open lightning network channel?

I would think that user A on a channel should be able to add bitcoins to a channel using the following steps: Create a transaction sending more money into the main multi-sig account Create a refund ...
5
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1answer
1k views

What is a hash pre-image as it is used for the breach remedy?

Until this afternoon I thought the anti-cheat transactions or breach remedies built on the exit-transaction of the counterparty. Apparently, they build on something called a "hash pre-image". What is ...
6
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1answer
1k views

How does Lightning transaction revocation work?

I've been reading about the Lightning Network, and I feel like I alllllmost understand it, but I can't quite figure out how the revocation transactions are designed so user A can claim the channel's ...
38
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1answer
12k views

What are Channel Factories and how do they work?

One of the open research questions for Lightning Network is that it will take a massive amount of on-chain transactions to create enough payment channels for all the Lightning Network users. Lately, I'...
9
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1answer
1k views

When closing the channel for LN - how to calculate the fee for the blockchain transaction?

To be clear: Following is not about fees in Lightning Network. Following is about fees on blockchain for transaction which closes the channel in LN. Channel closing transaction can be created months ...
10
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2answers
494 views

Transaction overriding in lightning network

I'm reading the lightning network whitepaper, and at some point it states this: Therefore, it is possible in bitcoin to devise a bitcoin script whereby all old transactions are invalidated, and ...
2
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1answer
520 views

Clarification of lightning network example (putting funds into lightning)

I'm checking How does the Lightning network work in simple terms? answer example: 1) Putting funds into Lightning We both send 0.5 BTC into a shared 2-of-2 multisig address. This requires a ...
6
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1answer
366 views

How are Lightning network, duplex channels, and micropayment channels related?

I'm new to Bitcoin and just became familiar with Micropayment channels. But how exactly do they relate to: Lightning network Duplex Micropayment Channels ? I am reading about these but can't find a ...
8
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1answer
454 views

What is the Lightning Network proposal? What problem is it trying to solve?

We already have a few questions about technical details of Lightning network, however, … What is the Lightning network proposal in the first place? What problem is it aiming to solve?
8
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1answer
313 views

Lightning Network scaling alternatives?

I'm really looking forward to the Lightning Network and all the efforts being put in by Blockchain.info, Blockstream, and others. But I was wondering if there aren't other options for decentralised ...
6
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1answer
2k views

What is a millisatoshi? I thought satoshi is the smallest unit?

I encountered 'millisatoshi' (msat) while browsing Lightning Network..., see screenshoot below: And subsequently I found it mentioned here: https://github.com/ElementsProject/lightning/blob/master/...
4
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1answer
512 views

Lightning network and lightweight clients

How will the lightning network handle lightweight clients? Do I understand it correctly that opening a payment channel require writing on the blockchain to protect against double-spend? The integrity ...
4
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1answer
430 views

Opening Lightning network channel: who is paying?

When opening a lightning network channel between two parties, which of the following is true: 1) They must both pay a fee to open the channel 2) They might both pay a fee to open the channel 3) ...
3
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3answers
163 views

In lightning network, is the balance publicly anounced in realtime?

In lightning network, is the balance publicly announced in Real-time? From one hand, it should be public as it crucial to the routing mechanism. But, in case that the balance might reveal some ...
2
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1answer
144 views

Full node vs lightning node

What is the difference between a full node and a lightning (network) node? If a lightning node, that is not a full node, opens a payment channel with another lightning node, how can the first peer ...
1
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1answer
70 views

Minimum funds required in a channel in Lightning?

I have noticed that, I cannot exhaust the funds in my channel to one side in lnd. I understand this makes sense so as to have some punishment in case of fraud, but I cannot find the reason for the ...
0
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1answer
338 views

Lightning network explaination (bidirectional channel funded by one party)

Let's say Alice and Bob want a bidirectional lightning channel with common 2-2 multisig address C. Alice is the only one putting funds in, say 100BTC. They agree on nLock of these funds to be 30 days ...
6
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2answers
232 views

Does anyone get custodial control of your funds when using Lightning Network?

When I open a payment channel on Lightning Network, do I need to subject my funds to custodial control of another party? Is there a counterparty risk in Lightning Network?
4
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1answer
387 views

Qualities of “Pay to Nested Witness Key Hash”

The lightning dev tutorial mentions the np2wkh or Pay to Nested Witness Key Hash address type, and I would like to find out more about it, so far without success. Can anybody explain how they are ...
3
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2answers
3k views

Will lightning network efficiently support a single payment of 25 cents?

Suppose my website sells emojis for 25 cents a piece. And I get 1000 unique customers that each buy just one. Will lightning network or any other technology allow me to process these transactions ...
3
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1answer
81 views

What differences exist between the Lightning Network implementation versus the white paper?

I'm reading the Lightning Network WP and came across SIGHASH_NOINPUT, then came across this: Lightning network: how was malleability actually fixed? Are there any other design considerations in the ...
2
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1answer
287 views

Lightning network: how was malleability actually fixed?

Section 3.1.2 of the Lightning paper (Version 0.5.9.2, last modified 14 January 2016) discusses ways to fix the transaction malleability issue, which prevented Bitcoin transactions from spending UTXO ...
2
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1answer
83 views

Duplex micropayment channels: criticisms of Lightning and implementation

A paper from 2015 by Decker and Wattenhofer proposes an interesting design for a payment channel network, which differs from the Lightning network. The authors claim in the Related work section that ...
2
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1answer
367 views

How to set up a node on Testnet of Lightning network on the world map

I am currently having problems posting my node on the "World Map." I can see my node on the "Force Map" on this site. Can anyone tell me how to enter the public IP so that it can be seen on the "World ...
1
vote
2answers
301 views

Lightning network: Are decrementing timelocks used in bi-directional channels?

I am surely not getting some part of this, but it seems to me that the paper and the video (both listed on the official Lightning website) contradict each other. In particular, the paper describes a ...
1
vote
2answers
201 views

What is happening when a channel is pending?

What is happening when a channel is pending when opened? How long does it usually take? To open a channel with a node you're already connected to you don't need to get consensus from all the other ...
1
vote
1answer
233 views

ZeroMQ support in Bitcoin Core 0.16.0 out-of-the-box?

In my previous question, I'm wondering why Lightning Networks lnd cannot talk to my Bitcoin Core bitcoind backend. The docs for lnd says it requires ZeroMQ compiled into bitcoind. Does the binary ...
0
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1answer
49 views

How to fund a bidirectional channel in Lightning Network by two participants? (Edited)

I brought up a similar question here: (Link to question) for a payment channel (in general case and without specifying which payment channel implementation.) Since this funding channels depends on the ...
0
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1answer
373 views

lightning node daemon hangs at “waiting for chain backend to finish sync, start_height=521042”

I'm using Lightning Networks' lnd 0.4.1-beta node in Windows, with a Bitcoin Core bitcoind full node backend. The bitcoind full node has the --txindex option, and is fully synced according to ...
0
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1answer
166 views

Asymmetric revocable commitment's revocation key

I am reading 'Mastering Bitcoin' to study for bitcoin and blockchain. At page 295-296, Author described that two parties should exchange their revocation key before signing new commitment transaction ...
0
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2answers
365 views

Lightning network smart contract technical explaination (unidirectional payment channel)

Let's observe direct unidirectional lightning channel between Alice and Bob. How does this start technically: They first create a 2-2 address C. They agree on the funds Alice will put into C, say ...
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0answers
75 views

Lightning Network understanding

Is the below scenario is how transaction are carried out in lightning network? Is this a proper understanding? Alice & Bob where they transfer 1 BTC each other.  1. Both Alice & Bob transfer ...
0
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2answers
62 views

How to fund a bidirectional payment channel?

Assuming two users want to create a bidirectional channel between themselves such that user_1 wants to pay 2 BTC to user_2 at the end and he divides this amount into 10 micro-payment (each micro-...
0
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1answer
52 views

Lightning network: funds into channels

Is there a minimum limit of bitcoin that can be added into a channel during the initialization? And, if I decided to open a channel with a lightning node, also that node has to add money to the ...