@ -252,12 +252,12 @@ By contrast, the channel partners may decide not to announce the channel, making
[NOTE]
====
You may hear the term "private channel", used to describe an unannounced channel. We avoid using that term because it is misleading and creates a false sense of privacy. While an unannounced channel will not be known to others while it is in use, it's existence and capacity will be revealed when the channel closes, because those details will be visible on-chain in the final settlement transaction. It's existence can also leak in a variety of other ways, so we avoid calling it "private"
You may hear the term "private channel", used to describe an unannounced channel. We avoid using that term because it is misleading and creates a false sense of privacy. While an unannounced channel will not be known to others while it is in use, its existence and capacity will be revealed when the channel closes, because those details will be visible on-chain in the final settlement transaction. Its existence can also leak in a variety of other ways, so we avoid calling it "private"
====
Unannounced channels are still used to route payments but only by the nodes which are aware of their existence, or given "routing hints" about a path that includes an unannounced channel.
When a channel and its capacity is publicly announced using the gossip protocol, the announcement can also include information about the channel (metadata), such as it's routing fees and timelock duration.
When a channel and its capacity is publicly announced using the gossip protocol, the announcement can also include information about the channel (metadata), such as its routing fees and timelock duration.
When new nodes join the Lightning Network they collect the channel announcements propagated via the gossip protocol from their peers, building an internal "map" of the Lightning Network. This map can then be used to find paths for payments, connecting channels together end-to-end.
@ -289,7 +289,6 @@ Each of these methods is useful for different circumstances which we will explor
For example, if your channel partner is offline you will not be able to follow "the good way" because a mutual close cannot be done without a cooperating partner.
Usually, your Lightning Network software will automatically select the best closing mechanism available under the circumstances.
===== Mutual close (the good way)
Mutual Close is when both channel partners agree to the closure of a channel and is the preferred method of channel close.
@ -628,7 +627,7 @@ Some of these differences are differences of terminology. There are also archite
==== Addresses vs Invoices, Transactions vs Payments
In typical payment using Bitcoin, a user receives a Bitcoin address (e.g. scanning a QR code on a webpage, or receiving it in an instant message or email from a friend). They then use their Bitcoin wallet to create a transaction to send funds to this address.
In a typical payment using Bitcoin, a user receives a Bitcoin address (e.g. scanning a QR code on a webpage, or receiving it in an instant message or email from a friend). They then use their Bitcoin wallet to create a transaction to send funds to this address.
On the Lightning Network, the recipient of a payment creates an invoice. A Lightning invoice can be seen as analogous to a Bitcoin address. The intended recipient gives the Lightning invoice to the sender, as a QR code or character string, just like a Bitcoin address.
@ -745,7 +744,7 @@ The synchronous and always-online nature of the Lightning network is probably th
On Bitcoin the smallest amount is a _satoshi_ which cannot be divided any further. Lightning is a bit more flexible, and Lightning nodes work with _milli-satoshis_ (thousandths of a satoshi). This allows tiny payments to be sent via Lightning. A single milli-satoshi payment can be sent across a payment channel, an amount so small it should properly be characterized as a _nanopayment_.
The milli-satoshi unit cannot, of course, be settled on the Bitcoin blockchain at that granularity. Upon channel closure, balances are rounded to the nearest satoshi. But over the lifetime of a channel, millions of nanopayments are possible at milli-satoshi levels. The Lightning network breaks throught the micropayment barrier.
The milli-satoshi unit cannot, of course, be settled on the Bitcoin blockchain at that granularity. Upon channel closure, balances are rounded to the nearest satoshi. But over the lifetime of a channel, millions of nanopayments are possible at milli-satoshi levels. The Lightning network breaks through the micropayment barrier.
Andreas M. Antonopoulos
4 years ago
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