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A penalty transaction is used to punish closing of a lightning network channel with an outdated channel state.

15 votes
Accepted

What is a hash pre-image as it is used for the breach remedy?

In the image below from Rusty Russell's Deployable Lightning paper, you can see a visualization of the commitment transactions and their outputs: For each payment in a channel, there are two commit …
David A. Harding's user avatar
1 vote
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Using multiple penalty transactions to increase max HTLCs per LN channel

Are there any significant hurdles preventing us from using multiple penalty transactions, where the nth penalty transaction spends HTLCs [n*483; (n+1)*483[ from the commitment transaction? At first s …
David A. Harding's user avatar