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A penalty transaction is used to punish closing of a lightning network channel with an outdated channel state.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