Questions tagged [micropaymentchannels]

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4 votes
1 answer
562 views

Accepting micropayment donations via Lightning Network - what is the most efficient / recommended architecture?

The difficulty that I am experiencing at the moment - how to accept Lightning Network micropayments donations supporting (shameless plug): https://genesis.re/wiki#Plan_B Zap / Joule: I send on-chain ...
4 votes
1 answer
672 views

Wallets that support payment channels?

I know that maybe it's a bit early to start asking Wallets to implement Lightning Network connections even if the majority don't support SegregatedWitness yet. But how about Payment Channels? In ...
4 votes
1 answer
99 views

How do I set up a long-lived lightning channel for accepting bitcoin donations?

I want to set up a long-lived lightning channel to accept bitcoin donations. The plan was to open a channel with a capacity of 2.5 mBTC (currently valued around ~100$), "reverse submarine swap&...
1 vote
1 answer
344 views

Reuse of payment hash in Lightning Network

Suppose there exist two such payment transfer request: A transfers 1 msat to R via A->B->C->R and S transfers 5 msat to R via S->B->C->R. Let the two HTLCs be formed across both the paths ...
1 vote
0 answers
52 views

Are payment channel attributes in the Lightning Network always directed?

While learning about payment channels, I understood channel attributes like base fees, proportional fees and maximum HTLC size would be directed, i.e., the attributes from A to B would not necessarily ...
1 vote
0 answers
29 views

Opportunity cost of coins locked in HTLC

If a party agrees to lock coins in HTLC for payment (having hashlock for time T), and it receives a fee f if the HTLC succeeds, then does it mean that the opportunity cost of coins locked in HTLC is f?...
1 vote
1 answer
80 views

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 ...
4 votes
1 answer
700 views

How to obtain the Channel_ID from the Short_Channel_ID?

Is there a way to retrieve the Channel_ID knowing the Short_Channel_ID without using any lightning network explorer? How is the Short_Channel_ID calculated? Is this operation reversible?
4 votes
1 answer
364 views

Lightning: why do we need decrementing timelocks in multi-hop payments?

The video (at 28:25) from the official Lightning website describes a multi-hop payment. I understand what a hash-locked contract is, but I still don't understand why we need a timelock aspect here. As ...
9 votes
1 answer
269 views

Why are multi hop virtual payment channels desirable?

There are papers about multi hop virtual payment channels emerging like the Perun paper or more recently the Donner Paper. The idea seems to be to reserve some liquidity on a path (or potentially flow)...
2 votes
3 answers
149 views

Is there some way to add a third party authorizer to (or by) a lightning network transaction?

I'm not asking for "multisig on the lightning network", but I'm more curious about how one would set up shared control over lightning network transactions in general. Imagine we don't have a ...
1 vote
3 answers
339 views

Pegged sidechain vs. Lightning Network?

How is the Elements Project's pegged sidechains concept similar to and different from the Lightning Network's payment channels concept?
4 votes
2 answers
1k views

Single-hop Payment vs Multi-hop payments

I am beginner of lightning network. When i am looking roughly lightning network whitepaper, i was confused about the types of contracts used in single-hop and multi-hop. As far as I understand, In ...
0 votes
1 answer
55 views

What if all transactions are off-chain in Bitcoin?

As we know, there are several off-chain solutions called payment channels in Bitcoin. The users can move off-chain their transactions and maintain a local ledger themselves. They only need to turn to ...
0 votes
1 answer
94 views

Other than relying on "side-chains", is there any way that Bitcoin could solve "micro transactions"? [duplicate]

I am very aware of the Lightning Network, and have repeatedly tried to gain a full understanding of it and start using it. I find that, whether it's due to it being too complex or me being too stupid, ...
1 vote
1 answer
74 views

What are all the payment channels implementations?

I know the Lightning Network (which Electrum wallet experimentally supports) is an implementation of a payment channel, but Mastering Bitcoin (2nd ed.) ch. 12, § "Routed Payment Channels (...
2 votes
1 answer
87 views

How will a common guy use Lightning Network when BTC hits 10 mln$?

If BTC hits 10mln$ and transactions fees will be horrendous denominated in $, how a "common guy" will be able to opt in using Bitcoin, if even opening LN channel will be too expensive then ...
0 votes
0 answers
77 views

Time locked puzzle for payment in Lightning Network

Currently HTLC's timeout transaction relies on absolute timelock enforced on the script. It allows a counterparty to withdraw the money from the contract if the other party doesn't release the ...
2 votes
1 answer
75 views

settling timelocked contracts based on amount of time elapsed in Lightning network

Suppose in a payment route A->B->C, A desires to pay 0.01 BTC to C. It locks in 0.01 BTC with B in the HTLC having timeout period of say 2 days and B locks 0.01 BTC with C in HTLC having timeout ...
0 votes
1 answer
67 views

Do payment channels have an address? And where are their transactions actually being written to?

In the Lighting Network or with micropayment it's possible to open up payment channels that basically work like a smart contract. At the beginning, the channel is funded by one or two parties with ...
1 vote
0 answers
72 views

Bitcoin Lightning Network

I created a channel in lightning network, did the payment and the channel balance of the receiver got updated. But after closing the channel , the wallet balance of the receiver is not getting updated ...
1 vote
2 answers
167 views

Can my 10,000 satoshi channel with a large LN node receive multiple LN payments that are larger than the amount in the channel?

Can my LN channel for some amount "X" receive a LN payement larger than "X"..or receive multiple small payments that exceed "X"? For example, say I have an online tea store and have one 100,000 ...
2 votes
1 answer
515 views

How to send payment through a predefined route?

Attempting a payment through a predefined route using: lncli -network=testnet queryroutes 02e34c1b4c5f8e7419cf4d10e3bc9651d46dc1af68df6a7b81a24951a9192aa9c4 25000 | lncli -network=testnet sendtoroute ...
0 votes
1 answer
193 views

Why does the amount of sats in a lightning payment channel amounts vary if no txns are occuring?

I recently got my lightning node up and running (went the easy route via Casa node). I noticed that I was having a difficult time tracking the amount of sats in a given channel..I wasn't doing any ...
2 votes
1 answer
121 views

Does Lightning Network has concept of continuous stream of value?

Examples: Car insurance: $1000 per year. Legal consultation: $500 per hour. Visiting a website: $100 per hour. Assuming 1 BTC = $8000 1 hour = $100 = 0.0125 BTC = 1,250,000 sat 1 second = 1,250,...
0 votes
1 answer
49 views

How multiple unfinished payments in single LN channel work?

I think I understand HTLCs, at least if they are on chain. I also have a basic understanding of how off chain channel looks like. I understand it as follows. It is a 2-of-2 multisig transaction ...
1 vote
1 answer
57 views

off-chain payment channels: Do we need to trust "Payment Service Providers"?

A paper entitled: "Privacy in Bitcoin Transactions: New Challenges from Blockchain Scalability Solutions" has tried to investigate privacy issues of the Bitcoin influenced by the solutions for ...
3 votes
1 answer
99 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-...
0 votes
1 answer
88 views

Required conditions to be selected as intermediary node (Payment Service Provider) in Lightning Network?

I bring up some important questions about terminology of the Lightning Network and how to select the intermediary node as the Payment Service Provider in a routing channel: The following video (Link ...
2 votes
1 answer
1k views

How to close stale lightning channels with c-lightning

I was running a lightning node using c-lightning about 9 months ago. Unfortunately the server was shutdown while a few channels were open. I have restarted the server and updated c-lightning to the ...
0 votes
1 answer
344 views

How to send a payment through a route saved in a json?

From lncli network=testnet sendtoroute -h: NAME: lncli sendtoroute - send a payment over a predefined route USAGE: lncli sendtoroute [command options] [arguments...] DESCRIPTION: Send a payment over ...
0 votes
1 answer
96 views

"state channel" v.s "micro-payment channel" : are they the same?

We use "micro-payment channels" such as "Bitcoin Lightning Network" or "Duplex Micro-Payment Channels" for saving transaction fee, accelerating payments, supporting better micro-payment and scaling ...
3 votes
2 answers
652 views

How to fund a bidirectional payment channel?

Assuming two users want to create a bidirectional channel between themselves such that user_1 wants to pay 2 BTC to user_2 at the end and he divides this amount into 10 micro-payment (each micro-...
2 votes
2 answers
2k views

Connecting to a node and opening a channel

What is the difference between connecting to a node and opening a channel with a node in the lightning network? What are the events happen when I just connect to a node?
2 votes
1 answer
159 views

Do I have to pay Fees on the Lightning Network if there is a Payment Failure?

Lightning nodes are talking fees for routing a payment. Will fees be charged anyway if a payment fails?
1 vote
1 answer
95 views

Implementing an "ad-hoc-like network of payment channels" on top of Bitcoin network?

If we define an ad-hoc network as follows: "An ad hoc network is a network that is composed of individual devices communicating with each other directly." [1] ad-hoc networks do not rely on ...
0 votes
1 answer
159 views

Why do we need a "routing" process in Lightning Network?

If I am wrong, please correct me. If we simplify Lightning Network, it seems to work similar to this simple unidirectional payment channel between two parties (although, Lightning Network is a ...
3 votes
1 answer
146 views

Duplex micropayment channels: criticisms of Lightning and implementation

A paper from 2015 by Decker and Wattenhofer proposes an interesting design for a payment channel network, which differs from the Lightning network. The authors claim in the Related work section that ...
6 votes
1 answer
287 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 ...
2 votes
1 answer
188 views

What are the pitfalls of repurposing the nLocktime field for backward compatability in eltoo?

In the eltoo proposal for paymentchannel management with less overhead proposed by Christian Decker et al. the update transactions need to be ordered. In chapter 4.1.2 of the proposal it is described ...
4 votes
3 answers
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-...
0 votes
1 answer
451 views

Sweeping funds from addresses generated by Extended Private Key (BIP39)

I have a site that is trying to process micropayments. It uses a mnemonic / extended private key generated here to generate a new Bitcoin address for every payment. Everything works fine except I'm ...
0 votes
1 answer
148 views

BIP Difference between final and active

What is the difference in the Bitcoins Improvements Proposals between the final status and the active status? According to the wiki An Proposed BIP may progress to Final only when specific criteria ...
5 votes
1 answer
1k views

Who pays the miner fees for the closing transaction of a payment channel?

For single-funded channels, I understand the miner fee for the the transaction that is opening the channel is paid by the actual party wanting to make a payment. However it's unclear who will ...
4 votes
2 answers
210 views

Payment channels with dynamic signatures

Talking about single-funded payment channels, the idea is quite simple: Alice puts 10 btc into a multi-sig signed with Bob, and then they each update the state accordingly to send money to each-other ...
4 votes
1 answer
102 views

Same entity controlling separated parts of a a lightning path

Given the lightning path Alice → Bob → Carol → Dave → Emilee (with Alice being the sender and Emilee being the receiver), assume Dave and Bob to be the same entity. By pulling funds from Dave to ...
0 votes
1 answer
35 views

Payment Channels - Securing the private key that locks client funds

Do I need to secure an automatic generated private key used for locking an anchor transaction (the one that opens the channel, locking the client funds), since it only serves that locking purpose (not ...
5 votes
2 answers
679 views

Are Micropayment channels still subject to malleability after BIP65?

After BIP 65, are simple, unidirectional, MPC still subject to transaction malleability? More specifically: Is the payee at risk because of malleability? If yes, how? (as far as I understood, the ...
2 votes
1 answer
296 views

why is double-spend not an issue for payment channels?

Micropayment Channels (MPC) cannot be used currently because of transaction malleability, I hear. AFAIK, people saying that have in mind that the refund & payment tx, which have as input the ...
2 votes
1 answer
164 views

micropayment channels, n-m addresses, interoperability

I just read bitcoinJ's working with contracts tutorial and I am puzzled as: it seems to me that n-m addresses are implemented in Bitcoinj using plain multisig (as defined in this bit of the developer'...