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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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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 ...
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'...
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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 ...
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2answers
2k views

What security weaknesses result from using off chain solutions?

What type of security weaknesses are potentially created by using off chain solutions (such as the lightning network) for a portion of Bitcoin network traffic?
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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 ...
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3answers
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Is Lightning Network a risk for Bitcoin security since it reduces miner fees?

does LN represent a risk for the Bitcoin ecosystem since it will reduce miner fees (the only income they'll have in a post-btc-minting world) and displace them into second layers? I couldn't find any ...
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3answers
2k views

Is centralization in the Lightning network inevitable? Why (not)?

Especially keeping in mind the possibility of single-funded channels (see Tadge's Google Doc Slides), buying from an exchange and concurrently opening a payment channel on the Lightning network would ...
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 ...
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1answer
1k views

In Lightning Network, what are the proposals for solutions to transfers to offline end users?

Basic examples in LN always mention payments from an online end user to other online end user. But let's say we want to send a micropayment donation to a blog that does not have an always online LN ...
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 ...
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 ...
9
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1answer
156 views

Channels state validation in lightning network?

I looked into docs but didn't find any information, how do client get information about the state of intermediate channels? Since channel transactions are offchain, and only channel participants ...
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?
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2answers
1k views

What makes millisatoshi real?

In the Lightning Network, it's possible to pay in units a thousandth of a satoshi, a millisatoshi. But you can't redeem them directly on the main chain when closing a channel, it will be subject to a ...
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 ...
8
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1answer
1k views

What is the timeline for Lightning Network's availability?

I have been reading a lot about this Lightning Network and what it does. But what I still don't know is if this Lightning Network is already being used for Bitcoin or when Bitcoin will start to use it ...
8
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1answer
709 views

Lightning Route Discovery - How to know capacity in each direction?

So i have a question how routing works in the LN. I read partly through the RFC described in https://github.com/lightningnetwork/lightning-rfc but I have still this open question. I know every node ...
8
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1answer
475 views

Would it be possible to send money through the Lightning Network to an offline address?

My understanding is that the current Lightning Network spec requires an address receiving money to sign things with its private key - which requires the owner of that key to be online. Are there any ...
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 ...
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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 ...
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2answers
422 views

For lightning network, can I surround myself with a bunch of nodes to increase anonymity

Let's say I'm on a lightning network. Can I create a bunch of nodes, and do all my spending through those nodes? Can you hide the fact that these nodes are likely controlled by the same person? How ...
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2answers
2k views

When running a Lightning Network hub, who pays the fees when a transaction has to be broadcast to the blockchain?

I've been educating myself on how the Lightning Network protocol works, and I have some questions. Let's say that a user sends a small payment to someone and it makes multiple hops through the ...
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3answers
1k views

Does a segwit based side chain like the lightning network allow for fractional reserve?

I'm confused. I've watched the video The Lightning Network Explained (Litecoin/Bitcoin), and read the following comments by Craig Wright: This occurs because schemes such as segregated witness ...
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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/...
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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 ...
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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?
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 ...
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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 ...
6
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1answer
1k views

How does the thunder network work? And how does it keep things decentralized?

How does the new thunder network work? How does it keep things decentralized?
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 ...
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2answers
429 views

What criteria should be taken into account when selecting nodes to create new lightning channels with?

Alex Bosworth recently pointed out: I see people connect to a "well connected" node on LN and by that they mean they connect to a node with lots of channels. The number of channels is actually a ...
5
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2answers
423 views

Does Ethereum support the features necessary to create the Lightning Network?

The Lightning Network of micropayment channels is a concept first conceived by Joseph Poon and Thaddeus Dryja. It requires a few features of bitcoin that are not available yet. OP_CHECKLOCKTIMEVERIFY ...
5
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1answer
213 views

Will all crypto-currencies exist on the same lightning network?

In the basic form, lightning-network is a chain of iou:s in one currency. But as far as I have understood, the plan is to put atomic swaps on lightning network. Will this mean that all currencies ...
5
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2answers
162 views

What does the Lightning Network UX look like?

I think understand the basics of how Lightning Network works. But what I'm failing to understand is how users will use this in a practical, day to day basis. Say I want to pay for my Starbucks coffee ...
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1answer
979 views

How does lnd's autopilot feature work?

Autopilot automatically connects to peers in order to establish a p2p network. I didn't find however a complete explanation of its motivation and logic.
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1answer
551 views

How do “trustless third-party watchers” work in Lightning Network?

The main point with LN is the need to monitor the blockchain. The reason for this is to detect if the counterparty misbehaves by publishing an old channel state to the blockchain. For a node running ...
5
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1answer
142 views

Does segregated witness allow to securely create LN channel opening transactions?

In Rusty Russell's paper about the simplified version of the Lightning Network, some problems about the practical implementation of the opening channel method from the original LN paper are mentioned: ...
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3answers
2k views

How does the lightning network affect miners?

Not a miner here, just wondering what other changes might be coming to the space. With Lightning fees are really low, how do miners manage this? Does this have a simple answer or is any resource I ...
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 ...
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3answers
2k views

How is the lightning network secured against hacking and double spends?

As I understand payment-channels, like the lightning network, they are working off chain (no record in the blockchain). The only record to the blockchain is the deposit transaction to open the payment-...
4
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1answer
223 views

Non-bidirection payment channels for lightning network

I am trying to understand the technology behind LN and similar concepts. As I understand it, LN is a network of bidirectional channels, which are created with some limited capacity, within which the ...
4
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1answer
151 views

Lightning Network: asymmetry in the information tracked by each participant?

In following paper, written by Christian Decker et al., there is a paragraph that is not clear to me. eltoo: A Simple Layer2 Protocol for Bitcoin "The central idea of Lightning is to invalidate ...
4
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1answer
390 views

In a Lightning Network who commits to the blockchain the final transaction?

So let's imagine a Lightning Network made up of thousand of nodes. Transactions are routed until the moment comes where all the channels need to be closed and commited I presume. Which node actually ...
4
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2answers
1k views

Is lightning network limited by the 'size' of channels?

Imagine we start with multiple channels which eventually link two individuals, Alice and Rob: (the BTC amounts is the total locked in their multisig address for their channels between each other) ...
4
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1answer
265 views

Do Lightning Channels have to be resolved before a certain time?

I seem to remember that Lightning channels could remain open indefinitely with the introduction of CLTV. Yet, I'm confronted with claims that they time out and coins are lost when they do. This ...
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 ...
4
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2answers
341 views

Why was transaction malleability fix required for Lightning network?

Transaction malleability is that TXID can be changed modifying the signature slightly without the private key. To implement Lightning Network, it was required to fix the malleability. However, I ...
4
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1answer
271 views

Can you send amounts that would typically be considered 'dust' through the Lightning Network?

Reading through the Lightning Network Paper, it seems that amounts sent through an intermediate node use the Hash Timelocked Output construction. The thing I'm concerned about with HTLCs is that they ...
4
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3answers
809 views

Is there incentive for those who run lightning nodes?

This is likely very much a noob question, but I would like to know if there are fees or incentives for those who are running a lightning node? Of course, other than having access to lightning network?
4
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1answer
128 views

How the disposable private keys are being shared in Lightning Network?

From the Lightning Network paper: ... once an updated commitment transaction is agreed upon, the previous commitment transaction pair is revoked by sharing the private keys needed to redeem those ...