15 votes

How does Lightning transaction revocation work?

When you open a lightning channel, you will receive from the other person their revocation_basepoint, and for each commitment transaction, you will send to the other person a per_commitment_point. The ...
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  • 61.3k
14 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 ...
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6 votes
Accepted

Transaction overriding in lightning network

Lightning payment channels are established by two parties Alice and Bob paying into a 2-of-2 multisignature address. Concurrently, they create two "exit-transactions", one for each participant which ...
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3 votes

Is eltoo more memory efficient for watchtowers?

Without eltoo (ie today) a watchtower needs to store a different justice transaction for every channel update in case the channel counterparty broadcasts (deliberately or accidentally) an expired ...
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3 votes

Lightning: Why would Bitcoin Network Accept a Breach Remedy?

You are right. If the dishonest party publishes an outdated commitment transaction it is most likely be accepted by the Bitcoin network. The key trick is that the old state has an output script that ...
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3 votes

Order of Exchanging Revocation Keys during Lightning Transactions

Alice and Bob jointly create a public key R for each revocable output (RSMC output script). They each privately generate r-1 and r-2, and derive public keys R-1 and R-2 from these. R is the sum of R-...
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3 votes
Accepted

Lightning Network: what happens if parties lose their txs?

Yes that is correct. Bob's revocation secret is used as an insurance policy for Alice. If she loses it, Bob will be able to act maliciously and get away with it. However, I want to add two things: ...
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2 votes

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

The capacity of the lightning network seems to ride on the "trust" of the counterparty you are opening a channel with along with the additional layer of trusting a watchtower to keep your ...
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2 votes

Lightning incentive for micro-cheating?

When the total capacity of the channel is less than it costs to close the channel, neither party has an incentive to close the channel. If broadcasting an outdated commitment transaction returns some ...
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2 votes

How is a doublespend prevented in the Lightning Network?

Alice and Bob open a channel with a fixed balance equal to the amount in the multi-sig address. The channel opens with a balance sheet which includes proof for both Alice and Bob’s balance. Every ...
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2 votes

How is a doublespend prevented in the Lightning Network?

Based on your comments, I think one fundamental issue you're missing is that to pay with LN, the other party has to be online at the time. There's no question of "what happens if Bob is offline" ...
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2 votes

How is a doublespend prevented in the Lightning Network?

Doublespends are not possible, because a payment on LN is only considered finalized once both payment channel owners have revoked the previous state of the payment channel by handing their partner a ...
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2 votes
Accepted

Lightning Network: hashlocks vs private keys exchange

So the question is: are commitment transactions between two nodes revoked through hashlocks or through private keys exchange? Either way will work, but hashlocks are simpler. They're described in ...
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2 votes

Is there any tech that uses a signature as a private key?

It seems that publishing a transaction that shouldn't be published (a "bad act") must involve publishing something the victim can use to unwind everything. Really, I should have asked the ...
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2 votes
Accepted

What is the cost of resolving a Lightning channel breach?

The cost is proportional to the number of committed HTLCs on the channel at the time of closure. Each HTLC has an output in the commitment transaction which pays into either a HTLC-success transaction ...
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  • 3,220
2 votes
Accepted

Can miners collude to bypass the penalty based revocation system of the lightning network?

When a channel is closed unilaterally, it requires two transactions by the closing party to move funds from a channel back into unilateral control. The closing party publishes their version of the ...
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1 vote

Can miners collude to bypass the penalty based revocation system of the lightning network?

It's named "penalty transaction" by the specs :). Regarding your core question, you are right but this also requires this miner to be able to heal this block chain without a censored (the ...
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1 vote

How to transmit fraudulent commitment transaction on lightning channel?

As far as I know the lightning clients that I know of (LND, c-lightning) do not offer this possibility through their API. So you'd be right to patch the code yourself. For LND, you should have a look ...
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  • 275
1 vote

Lightning: Why would Bitcoin Network Accept a Breach Remedy?

1) An invalid commitment transaction remains a valid transaction on the bitcoin network until the funding TX output is spent. Each commitment transaction, once signed will remain valid until the ...
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  • 2,423
1 vote

Lightning: Why would Bitcoin Network Accept a Breach Remedy?

The assumption in your last question is wrong, since there is no exclusivity in the publishing of both transactions. They can be accepted into the ledger and as a matter of fact, the subsequent ...
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1 vote

Transaction overriding in lightning network

A commitment transaction is a transaction that sends person A's bitcoins to person A, and person B's bitcoins to an intermediate address (let's call it B*). B* can be spent by person B, but only after ...
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  • 1,501

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