Questions tagged [ln-penalty-transaction]

A penalty transaction is used to punish closing of a lightning network channel with an outdated channel state.

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3
votes
1answer
46 views

Is eltoo more memory efficient for watchtowers?

I vaguely remember a paper which stated that in their current implementation, lightning watchtowers require a lot of memory because they need to store information about (a penalty TX for) every ...
7
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4answers
465 views

Can miners collude to bypass the penalty based revocation system of the lightning network?

The core lightning security assumption relies on a punishment mechanism called “Justice Transaction”. However, how can you prevent a malicious user from colluding with a miner, and producing a block ...
3
votes
1answer
63 views

How to transmit fraudulent commitment transaction on lightning channel?

I'm trying to simulate a fraudulent commitment transaction on lightning. How would you submit an earlier commitment transaction. It doesn't seem like this can be done with a command. Does anyone know ...
3
votes
1answer
87 views

What is the cost of resolving a Lightning channel breach?

If someone breaches a Lightning channel (aka tries to spend more than he is allowed to), the other party has to intervene and prove that the coins actually belong to them. This process happens on-...
2
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3answers
122 views

Lightning: Why would Bitcoin Network Accept a Breach Remedy?

The Lightning Network Whitepaper discusses a situation in which one party of a payment channel broadcasts an outdated commitment transaction. The other party through a breach remedy transaction will ...
2
votes
1answer
105 views

Lightning Network: what happens if parties lose their txs?

Let's take the classical example of Alice and Bob with 0.5BTC each. Commitment Txs are exchanged for a new balance sheet: Alice has 0.6BTC, and Bob 0.4BTC. If Alice loses Bob's Breach Remedy Tx, she ...
5
votes
2answers
125 views

Lightning incentive for micro-cheating?

New to Lightning, and I'm having a hard time understanding something about the incentive system. So, if block sizes remain fixed, and transaction fees become prohibitively expensive one day, owing to ...
5
votes
3answers
1k views

How is a doublespend prevented in the Lightning Network?

How Lightning Network handles double-spend? What will happen when the other person is not available online to enforce the integrity of the transactions? PFB my understanding of the Lightning Network. ...
0
votes
1answer
224 views

Double signature requirement of Breach Remedy Transaction

In the Lightning Network Paper (https://lightning.network/lightning-network-paper.pdf), Breach Remedy Transactions seem to require signatures by both channel members. I infer this from this ...
9
votes
1answer
2k 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 ...
2
votes
1answer
538 views

Lightning Network: hashlocks vs private keys exchange

I am reading the Lightning Network paper and noticed that when describing bidirectional payment channels, the authors used "Breach Remedy transactions" and the exchange of the two parties' private ...
7
votes
1answer
2k 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 ...
1
vote
2answers
89 views

Is there any tech that uses a signature as a private key?

I've been pondering how the Lightning Network will work when one of the parties in a channel tries to cheat. It seems that publishing a transaction that shouldn't be published (a "bad act") ...
10
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2answers
670 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 ...