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A penalty transaction is used to punish closing of a lightning network channel with an outdated channel state.

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2 votes
1 answer

How can I recover a Core Lightning node as safely as possible if the backups might be out of date?

Suppose my Core Lightning node has suffered a catastrophic failure. I have a copy of the HSM secret. I also have copies of the emergency.recover file and the backup file maintained by the backup ...
Steve's user avatar
  • 171
1 vote
1 answer

Lightning: Can a channel partner betray with an arbitrary balance?

I know, that I can settle old balances in a closing transaction. But can I also settle arbitrary "fantasy" balances in a force close when my channel partner is long dead. By example by ...
Rainer Feike's user avatar
4 votes
2 answers

Using multiple penalty transactions to increase max HTLCs per LN channel

BOLT#2 states the below as one rationale to limit a Lighting Network channel to 483 HTLCs: It also ensures that a single penalty transaction can spend the entire commitment transaction, as calculated ...
stickies-v's user avatar
1 vote
1 answer

Question about Payment Channels

I was reading the book Mastering Bitcoin written by Andreas about state channels for fast payment processing. There was a part named "Asymmetric Revocable Commitments" that said: given an ...
John Pham's user avatar
1 vote
1 answer

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 ...
Patoshi パトシ's user avatar
3 votes
1 answer

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 ...
Hare Brained Brian's user avatar
8 votes
4 answers

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 ...
Brqoo's user avatar
  • 372
3 votes
1 answer

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 ...
Joel Davidson's user avatar
3 votes
1 answer

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-...
Grunzwanzling's user avatar
3 votes
3 answers

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 ...
Bill Bisco's user avatar
3 votes
2 answers

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 ...
Tejaswi Nadahalli's user avatar
2 votes
1 answer

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 ...
Paul Razvan Berg's user avatar
5 votes
2 answers

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

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. ...
Holmes's user avatar
  • 317
0 votes
1 answer

Double signature requirement of Breach Remedy Transaction

In the Lightning Network Paper (, Breach Remedy Transactions seem to require signatures by both channel members. I infer this from this ...
UTF-8's user avatar
  • 3,224
12 votes
1 answer

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 ...
B T's user avatar
  • 1,638
2 votes
1 answer

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 ...
Simone Bronzini's user avatar
8 votes
1 answer

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 ...
Murch's user avatar
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1 vote
2 answers

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") ...
Dave Scotese's user avatar
10 votes
2 answers

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 ...
Bilthon's user avatar
  • 247