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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.

51
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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 ...
39
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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'...
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 ...
18
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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?
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 ...
12
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3answers
3k views

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 ...
11
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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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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
509 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 ...
10
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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 ...
10
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1answer
826 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 ...
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
458 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?
9
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2answers
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 ...
9
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1answer
495 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 ...
9
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1answer
158 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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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 ...
8
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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
322 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 ...
7
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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 ...
7
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2answers
425 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 ...
6
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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 ...
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/...
6
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2answers
540 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 ...
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 ...
6
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1answer
101 views

Why do lightning invoices expire?

I'm considering the development of a lightning app, and I'm trying to make it non custodial. I was thinking on pre-generating invoices for all users every x time to make things simpler. To do that I'...
6
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3answers
378 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 ...
6
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2answers
237 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
387 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 ...
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 ...
6
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1answer
1k 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.
6
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1answer
593 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 ...
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 ...
5
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1answer
110 views

Why is the length of the transport messages on the lightning network encrypted?

From BOLT 08 we can see that every message is sent in the following way: 2 byte: length 16 byte: MAC [length] byte: Encrypted message 16 byte: MAC In reality these messages will be send over TCP/...
5
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1answer
234 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 ...
5
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1answer
401 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 ...
5
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1answer
289 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 ...
5
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2answers
427 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
908 views

When opening a LN channel using LND, what does 'push-amt' do?

I set up Lightning node (LND) and wanted to receive a payment. Autopilot for managing the channels always creates channels w/ zero remote balance, thus nobody can route a payment to/through my node. ...
5
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1answer
496 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 ...
5
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3answers
1k 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?
5
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1answer
214 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
38 views

Why SHOULD the funding tx consume BIP 141 inputs?

In BOLT 02 we read that the funding TX should only consume segwit inputs. The sender: when creating the funding transaction: SHOULD use only BIP141 (Segregated Witness) inputs. What is the reason ...
5
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2answers
164 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 ...
5
votes
1answer
148 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: ...
5
votes
1answer
52 views

Can the lightning network be subject to DoS attacks due to message flooding?

In the current implementations of the Lightning network protocol (c-lightning, eclair and lnd), is there any check that stops spamming/flooding of channel_announcement, mode_announcement or ...
5
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1answer
459 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) ...
5
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1answer
74 views

How to migrate lightning nodes?

I am wondering what steps to take to migrate a lighting node to a different server, keeping the pubkey/identity. The safest option is obviously to close the channels first. How is the identitiy pubkey ...