Questions tagged [ln-penalty-transaction]

A penalty transaction is used to punish closing of a lightning network channel with an outdated channel state.

Filter by
Sorted by
Tagged with
1 vote
1 answer
71 views

Watchtower limitations and possible solutions so far in 2021-Nov?

Having read a bit more about the Lightning network. The capacity of the lightning network seems to ride on the "trust" of the counterparty you are opening a channel with along with the ...
user avatar
3 votes
1 answer
86 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 ...
user avatar
7 votes
4 answers
503 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 ...
user avatar
  • 362
3 votes
1 answer
90 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 ...
user avatar
3 votes
1 answer
93 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-...
user avatar
2 votes
3 answers
155 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The Lightning Network Whitepaper discusses a situation in which one party of a payment channel broadcasts an outdated commitment transaction.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 ...
user avatar
3 votes
2 answers
239 views

Order of Exchanging Revocation Keys during Lightning Transactions

How do Alice and Bob share their ephemeral private keys simultaneously? If they don't, and let's say Alice first sends Bob her private key. At this point, Bob can broadcast his current commitment ...
user avatar
2 votes
1 answer
117 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 ...
user avatar
5 votes
2 answers
139 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 ...
user avatar
6 votes
3 answers
2k 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. ...
user avatar
  • 307
0 votes
1 answer
249 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 ...
user avatar
  • 3,154
11 votes
1 answer
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 ...
user avatar
  • 1,501
2 votes
1 answer
584 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 ...
user avatar
7 votes
1 answer
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 ...
user avatar
  • 63.5k
1 vote
2 answers
97 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") ...
user avatar
10 votes
2 answers
754 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 ...
user avatar
  • 213